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Monday,

August 6, 2001

Part II

Department ofTransportationFederal Aviation Administration

14 CFR Parts 91 et al.Final Rule With Request for Commentsand Direct Final Rule With Request forComments; Final Rule

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41088 Federal Register / Vol. 66, No. 151 / Monday, August 6, 2001 / Rules and Regulations

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 91, 121, 135, and 145

[Docket No. FAA–1999–5836;Amendment Nos. 91–269, 121–286,135–82, 145–27, and SFAR 36–7]

RIN 2120–AC38

Repair Stations

AGENCY: Federal AviationAdministration (FAA), DOT.ACTION: Final rule with request forcomments and direct final rule withrequest for comments.

SUMMARY: This rule updates and revisesthe regulations for repair stations. Thisaction is necessary because many of thecurrent repair station regulations do notreflect changes in repair station businesspractices and aircraft maintenancepractices. The rule reorganizes therequirements applicable to repairstations to reduce duplication ofregulatory language and eliminateobsolete information. In addition, therule establishes new definitionsapplicable to repair stations and updatesrequirements relating to repair stationcertification; housing, facilities,equipment, materials, and data;personnel; and operations. The rule alsoeliminates, where practicable,distinctions between repair stationsbased on geographical location. Thisfinal rule does not adopt the proposedrevised repair station ratings and qualityassurance system; these proposals willbe addressed in a subsequentrulemaking action. Finally this directfinal rule removes the appendix to therepair station regulations that sets forththe job functions and equipmentrequirements for repair stations.DATES: This rule is effective April 6,2003, with the following exceptions:§ 145.163 which is effective April 6,2005, and the removal of Appendix A topart 145 which is effective April 6,2003, unless adverse comments arereceived by October 5, 2001. Commentson the information collectionrequirements must be submitted on orbefore October 5, 2001.ADDRESSES: Address your comments tothe Docket Management System, U.S.Department of Transportation, RoomPlaza 401, 400 Seventh Street, SW.,Washington, DC 20590–0001. You mustidentify the docket number FAA–1999–5836 at the beginning of yourcomments, and you should submit twocopies of your comments. If you wish toreceive confirmation that the FAA

received your comments, include a self-addressed, stamped postcard.

You may also submit commentsthrough the Internet to http://dms.dot.gov . You may review thepublic docket containing comments tothese proposed regulations in person inthe Dockets Office between 9:00 a.m.and 5:00 p.m., Monday through Friday,except Federal holidays. The DocketsOffice is on the plaza level of theNASSIF Building at the Department ofTransportation at the above address.Also, you may review public dockets onthe Internet at http://dms.dot.gov.FOR FURTHER INFORMATION CONTACT:Diana L. Frohn, Aircraft MaintenanceDivision, Air Carrier MaintenanceBranch, AFS–330, Federal AviationAdministration, 800 IndependenceAvenue SW., Washington, DC 20591;telephone (202) 493–4941; facsimile(202) 267–5115.SUPPLEMENTARY INFORMATION: The DirectFinal Rule Procedure

The FAA anticipates that the removalof appendix A to part 145 will not resultin adverse or negative comments;therefore the FAA is removing appendixA as a direct final rule. Commentsreceived in response to Notice ofProposed Rulemaking No. 99–09generally opposed appendix A. Manycommenters noted that the appendix isoutdated. Commenters questioned theFAA’s ability to keep any such listingcurrent. Unless a written adverse ornegative comment, or a written notice ofintent to submit an adverse or negativecomment is received within thecomment period, the removal ofappendix A will become effective on thedate specified above. After the close ofthe comment period, the FAA willpublish a document in the FederalRegister indicating that no adverse ornegative comments were received andconfirming the date on which the directfinal rule will become effective. If theFAA does receive, within the commentperiod, an adverse or negative comment,or written notice of intent to submitsuch a comment, a documentwithdrawing the removal of appendix Awill be published in the FederalRegister, and a notice of proposedrulemaking may be published with anew comment period.

Comments Invited

An opportunity for comment on theinformation collection requirements ofthis rule was not provided during thenotice of proposed rulemaking stage.Therefore, a 60-day comment period isattached to this final rule.

Also, we have removed appendix Afrom part 145. Because we did not

propose to remove appendix A, we seekcomments on its removal. Generally, thefinal rule accomplishes the purpose ofappendix A without restricting a repairstation’s ability to adapt futuretechnologies. The reasons for removingappendix A are explained in greaterdetail in the section-by-sectiondiscussion of requirements withdrawnfrom the proposal.

Interested persons are invited tosubmit written data, views, orarguments regarding the informationcollection requirements and the removalof appendix A as they may desire.Substantive comments should beaccompanied by cost estimates.Comments must identify the regulatorydocket or notice number and besubmitted in duplicate to the DOT RulesDocket address specified above.

All comments received, as well as areport summarizing each substantivepublic contact with FAA personnelconcerning this rulemaking, will befiled in the docket. The docket isavailable for public inspection beforeand after the comment closing date.

All comments received on or beforethe closing date will be considered bythe FAA before the effective date of thedirect final rule. Comments filed latewill be considered as far as possiblewithout incurring expense or delay.

Commenters wishing the FAA toacknowledge receipt of their commentssubmitted in response to this documentmust include a pre-addressed, stampedpostcard with those comments on whichthe following statement is made:‘‘Comments to Docket No. FAA–1999–5836.’’ The postcard will be datestamped and mailed to the commenter.

Availability of Rulemaking DocumentsYou can get an electronic copy using

the Internet by taking the followingsteps:

(1) Go to the search function of theDepartment of Transportation’selectronic Docket Management System(DMS) web page (http://dms.dot.gov/search).

(2) On the search page type in the lastfour digits of the Docket number shownat the beginning of this document. Clickon ‘‘search.’’

(3) On the next page, which containsthe Docket summary information for theDocket you selected, click on thedocument number for the item you wishto view.

You can also get an electronic copyusing the Internet through FAA’s webpage at http://www.faa.gov/avr/arm/nprm/nprm.htm or the FederalRegister’s web page at http://www.access.gpo.gov/su_docs/aces/aces140.html.


41089Federal Register / Vol. 66, No. 151 / Monday, August 6, 2001 / Rules and Regulations

You can also get a copy by submittinga request to the Federal AviationAdministration, Office of Rulemaking,ARM–1, 800 Independence AvenueSW., Washington, DC 20591, or bycalling (202) 267–9680. Make sure toidentify the amendment number ordocket number of this rulemaking.

Small Business Regulatory EnforcementFairness Act

The Small Business RegulatoryEnforcement Fairness Act (SBREFA) of1996 requires the FAA to comply withsmall entity requests for information oradvice about compliance with statutesand regulations within its jurisdiction.Therefore, any small entity that has aquestion regarding this document maycontact its local FAA official, or theperson listed under FOR FURTHERINFORMATION CONTACT. You can find outmore about SBREFA on the Internet atour site, http://www.gov/avr/arm/sbrefa.htm. For more information onSBREFA, e-mail us at [email protected].

Background

Very few substantive changes havebeen made to the regulations applicableto repair stations since they wererecodified in Title 14, Code of FederalRegulations (14 CFR) (27 FR 6662, July13, 1962). Portions of 14 CFR part 145are no longer appropriate or havebecome increasingly difficult toadminister. Other portions of the rule nolonger make a significant contribution toaviation safety or do not warrant theassociated administrative costs. Inaddition, the FAA has grantedexemptions and created other specialadministrative procedures to handlesituations not provided for adequatelyin the regulations. To ensure theregulations are appropriate for today’srepair station industry, the FAAdetermined that part 145 should berevised.

In 1975, the FAA and industryparticipants in the FAA’s First BiennialOperations Review recommended thatspecific and substantial requirements ofpart 145 be revised. Although minoramendments to part 145 weresubsequently adopted, no major revisionwas made. However, a significantamendment to part 145 was adopted onNovember 22, 1988 (Amendment No.145–21, 53 FR 47362), that expandedthe scope of work foreign repair stations(that is, those U.S.-certificated repairstations located outside the UnitedStates) are authorized to perform. Theamendment also permitted certainrepair stations to contract maintenancefunctions to noncertificated

organizations/facilities under specificconditions.

As part of a regulatory review of 14CFR part 43; 14 CFR part 65, subpart E;and part 145, the FAA held four publicmeetings in 1989 (54 FR 30866; July 24,1989). The meetings were held inWashington, D.C.; Fort Lauderdale,Florida; Dallas, Texas; and SanFrancisco, California. These meetingsprovided a forum for the public to offercomments concerning the possiblerevision of the rules governing repairstations. More than 500 representativesof repair stations, airlines, unions,manufacturers, foreign governments,and industry organizations, andindividuals attended the meetings. Thegoal of the meetings was to gatherenough factual information from thepublic to determine whether the repairstation regulations should be revisedand, if so, to determine what revisionsshould be made.

During the review of the repair stationrules, the FAA examined variousdocuments and related rulemakingactions. These documents includedFAA Order 8300.10, AirworthinessInspector’s Handbook; advisorycirculars (ACs) that relate to repairstations, such as AC No. 145–3, Guidefor Developing and Evaluating RepairStation Inspection Procedures Manuals,and AC No. 145–5, Repair StationInternal Evaluation Programs; andprevious petitions for exemption frompart 145. The FAA also reviewed JointAviation Requirement (JAR) 145:Approved Maintenance Organizations,established by the Joint AviationAuthorities (JAA), an organization ofEuropean civil aviation authorities. As aresult of the above action, the FAApublished Notice of ProposedRulemaking No. 99–09, ‘‘Part 145Review: Repair Stations’’ (64 FR 33142,June 21, 1999).

The FAA extended the close of thecomment period on Notice No. 99–09from October 19, 1999, to December 3,1999, in response to commenters’requests. The FAA receivedapproximately 530 comments inresponse to Notice No. 99–09.Associations representing repair stationsand other aviation-related entities,unions, aviation authorities, air carriers,manufacturers, members of Congress,the National Transportation SafetyBoard (NTSB), and individual repairstations provided comments on theproposal.

The Final RuleThe FAA appreciates the comments

received in response to its proposal.Many revisions to the proposal arebased in part on language provided by

commenters. The revisions clarify theintent of the rule, provide moreregulatory flexibility in carrying out therequirements, and in some cases lessenregulatory burdens withoutcompromising safety.

This final rule reorganizes andclarifies certain subparts and sections ofpart 145. We have arranged the subpartsby subject rather than geographiclocation of the repair station. We alsohave eliminated limited ratings formanufacturer’s maintenance facilitiesand removed the corresponding subpart.

In addition, we have revised thehousing and equipment requirements.Part 145 no longer requires a repairstation with an airframe rating toprovide permanent housing thatencloses at least one of the heaviestaircraft within the weight class forwhich it is rated. Instead, a repairstation is only required to providepermanent housing that encloses thelargest type and model of aircraft listedon its operations specifications. Thefinal rule also includes provisions forexchanging equipment among satelliterepair stations and for leasingequipment.

The final rule requires repair stationsto develop a repair station manual thatprescribes its operational procedures.The rule also requires repair stations todevelop a quality control manual that issimilar to the currently requiredinspection procedures manual.

Although we proposed a new ratingand class system, we have retained thecurrent rating and class system in thefinal rule. Also, the final rule does notinclude a quality assurance program.We intend to seek advice andrecommendations from the affectedaviation community beforepromulgating rulemaking on theseissues.

Finally, the final rule provides forsatellite repair stations, expands thescope of contract maintenance, andrequires repair stations to develop atraining program.

Because the Administrator of the FAAhas delegated various responsibilities tooffices within the Agency, we havedetermined it is appropriate to replacereferences to the ‘‘Administrator’’ withthe ‘‘FAA.’’ Further, in an effort torecognize the use of electronic means tostore and send information we haveremoved references to paper copies.

This final rule will become effective20 months after it is published in theFederal Register. This time period isneeded to develop ACs and internalFAA guidance, and to train FAApersonnel. Additionally, repair stationswill need adequate time to comply withthe new requirements. The training



requirements (§ 145.163), becomeeffective 24 months after the effectivedate of the final rule. Certificated repairstations will need this additional time todevelop and submit a training programto the FAA for approval. Specific detailsregarding the deadlines for submitting atraining program for FAA approval arediscussed later.

Section-by-Section Discussion ofRequirements Withdrawn From theNotice of Proposed Rulemaking

Based on comments received, we arewithdrawing some of the sectionsproposed in the NPRM. Specifically, weare withdrawing advertising (proposed§ 145.9), deviation authority (proposed§ 145.11), ratings and classes (proposed§ 145.59), transition to new system ofratings (proposed § 145.61), qualityassurance (proposed § 145.201(a)(1)),and job functions (proposed appendix Ato part 145). Below is a section bysection discussion of these withdrawnrequirements.

Proposed § 145.9 Advertising

Proposed paragraph (a) would haveprohibited a repair station fromadvertising as a certificated repairstation until the issuance of a certificate.Proposed paragraph (b) would haveprohibited a repair station from makingany statement about itself, either orallyor in writing, that was false or designedto mislead any person. Finally,proposed paragraph (c) would haverequired any advertisement to includethe repair station’s certificate number.

One association requested that theFAA discuss what constitutesadvertising for purposes of the proposal.Several commenters recommendeddeleting proposed paragraphs (a) and (b)because Federal and State lawsadequately protect the public from falseand misleading advertising. Thecommenters generally recommendedrevising proposed paragraph (b) becauseany statement by any individual couldbe misinterpreted and construed to be aviolation under the proposed language.One commenter suggested revisingproposed paragraph (b) to prohibit arepair station from misleadingindividuals with respect to ratings,limitations, privileges, and other mattersregulated by part 145. Severalcommenters, including one association,supported requiring a repair station toinclude its certificate number inadvertisements. Another commenterstated that including a certificatenumber in advertisements does notincrease safety. That commenter notedthat other certificate holders, such as aircarriers and pilot training schools, are

not required to include certificatenumbers in advertisements.

In light of the comments regardingFederal and State laws on false andmisleading advertising, the FAA haswithdrawn proposed § 145.9(a) and (b).In addition, the FAA finds thatrequiring a repair station to include itscertificate number in any advertising isunnecessary and involves a repairstation’s business decisions in an areanot related to ensuring safety or theairworthiness of articles. The FAA notesthat the public has access to a repairstation’s certificate number under§ 145.5(b), which requires the certificateand operations specifications to beavailable on the repair station’spremises for inspection by the public.Therefore, the FAA has not includedproposed § 145.9 in the final rule.

Proposed § 145.11 Deviation Authority

The proposal would have establishedprocedures for repair stations to applyfor deviation authority from theregulations similar to the proceduresused by manufacturers and operators.

Many commenters supporteddeviation authority for repair stations asa means of providing regulatoryflexibility. However, severalcommenters recommended addingprovisions to make the applicationprocedure for deviation authoritypublic. In addition, commentersindicated that the deviation authorityshould be processed at the local levelrather than at FAA Headquarters. Othercommenters expressed concern over thediscretion given to FAA inspectors toterminate or amend a letter of deviationauthority, which the commenterscontended could disrupt business. Someof the commenters who opposed theaddition of deviation authority statedthat it would replace the public processwith a hidden process, benefit largecertificated repair stations, and providelittle or no benefit to small generalaviation repair stations.

When proposed, the FAA envisionedthat deviation would be sought fromonly a few sections, in particular theproposed quality assurance system andtraining program requirements.However, as previously noted, the FAAintends to propose requirements forquality assurance in a subsequentrulemaking action. In addition, the FAAwill be issuing guidance on the trainingprogram requirements and will approvethese programs on a case-by-case basis.In light of the commenters’ concernsabout granting deviation authority, relieffrom part 145 regulations will continueto be addressed through the 14 CFR part11 exemption process. Exemptions are

public actions processed at FAAHeadquarters.

Proposed § 145.59 Ratings and ClassesThis proposed section would have

significantly revised the current systemof ratings and classes. The FAAspecifically requested comments on theproposed regulations and asked whetherthe proposed system of ratings andclasses should be addressed in aseparate rulemaking.

Comments on the proposal weremixed. Some commenters found thenew system confusing and complicated,and others stated that the proposal ismore restrictive than the current systemof ratings and classes. One associationstated that the proposal merely adds toan outmoded class system and offeredin its place an alternative ratingssystem. Other commenters criticizedspecific parts of the proposal, using asan example, the weights used todistinguish between aircraft classratings. Some commenters believe thatthe number of powerplant class ratingswould be confusing, and recommendedinstead associating powerplant andairframe class ratings.

Although many commenters believe aseparate rulemaking action to revise thesystem of ratings is not necessary, theFAA finds that the comments andalternatives received have merit andshould be considered further before anew system of rating and classes isadopted. Therefore, this final ruleretains the current rating and classsystem. The comments will beconsidered during development of thesubsequent notice of proposedrulemaking.

Proposed § 145.61 Transition to NewSystem of Ratings

This section proposed procedures fortransitioning to the proposed system ofratings and has not been included inthis final rule.

Proposed § 145.201 Quality Assuranceand Quality Control Systems

Proposed § 145.201(a)(1) would haverequired a repair station to establish aquality assurance system.

Commenters generally opposed theproposed quality assurance systemrequirements. One association statedthat although its members support theconcept of quality assurance, the FAAhas not justified the burden of therequirement in terms of safety. Somecommenters opposed the proposalbecause the FAA has not adequatelydescribed the specific requirements.Some of those commenters requestedthat advisory material be issued alongwith the proposal to allow the public



adequate opportunity to comment. Fourunions expressed support for requiringrepair stations to have a qualityassurance system. Some commentersasserted that implementation of aquality assurance system would requirethem to incur significant costs.

The FAA agrees that the qualityassurance program must haveadequately defined requirements andthat guidance material is necessary forimplementation of an effective system.We also recognizes that establishment ofa quality assurance system may beparticularly burdensome for small repairstations. The FAA will review thecomments submitted on this issue anddevelop specific requirements for aquality assurance program in asubsequent notice of proposedrulemaking.

Proposed Appendix A to Part 145 JobFunctions

Proposed appendix A set forth jobfunctions and equipment requirementsfor repair stations.

Commenters are generally opposed toappendix A as proposed. Manycommenters noted that the proposedappendix is already outdated. Still,others questioned the FAA’s ability tokeep any such listing current whileother commenters offered specificrevisions to the equipmentrequirements.

The FAA agrees with commenterswho expressed concern about thedifficulties in keeping appendix Acurrent; therefore, the agency hasdecided to withdraw appendix A. Forthe same reason, the FAA has notincluded current appendix A in thefinal rule. Because the FAA did notpropose to eliminate appendix A inNotice No 99–09, we seek comments onits removal. The final rule willaccomplish the purpose of appendix Awithout restricting a repair station’sability to adapt future technologies.

The final rule revises the equipmentrequirements and the contracting outprovisions to provide more flexibilityfor repair stations to accomplishmaintenance, preventative maintenance,or alterations on articles for which theyare rated. Revisions to the equipmentsection of the final rule will permitcertificated repair stations to enter intocontracts or other leasing agreements toobtain equipment needed in themaintenance of articles for which it israted. Repair stations will no longerhave to maintain a seldom used,expensive piece of equipment just toretain their current ratings. Repairstations and their contract maintenanceproviders will still be required to havethe equipment when performing a

maintenance function. Likewise, thecontracting out provisions have beenrevised to better reflect current industrypractices in specialized areas. Thecombination of these actions effectivelyincorporates appendix A in its entirety.

Section-by-Section Discussion of theFinal Rule

Below is a section-by-sectiondiscussion of the final rule. We haveprovided a brief description of theproposed rule, a summary of thecomments received, and the FAA’sdisposition.

Part 145—Repair Stations

Subpart A—General

Section 145.1 Applicability

Summary of Proposal/Issue: The FAAproposed to revise current § 145.1 withrespect to obtaining repair stationcertificates and the general rules underwhich certificated repair stations mustoperate. The FAA proposed to add theterm ‘‘preventive maintenance’’ andproposed to replace the currentreference to ‘‘airframes, powerplants,propellers, and appliances’’ with ‘‘anyaircraft, airframe, aircraft engine,propeller, appliance, or component partthereof.’’ The FAA proposed deletingparagraph (b), which delineated theterm ‘‘domestic’’ and ‘‘foreign’’ indescribing the location of a repairstation.. As discussed in Notice No.99–09, the FAA removed, whereappropriate, the distinctions betweenrepair stations located inside the UnitedStates and those located outside theUnited States. In addition, the FAAproposed eliminating paragraph (c),which addressed the limited rating formanufacturers.

Comments: Most commenterssupported the FAA’s proposed revisionsto § 145.1. However, severalcommenters recommended eliminatingthe phrase ‘‘component part thereof’’because of the burden it would place onthe applicant for a repair stationcertificate. One commenterrecommended including the term‘‘rebuilt’’ whenever the term‘‘maintenance’’ is used.

With regard to the proposedelimination of the limited rating formanufacturers, three unions supportedthe proposal. Manufacturers opposedthe elimination of the rating andquestioned why a production approvalholder may perform major repairs andmajor alterations, but under theproposal a separate rating would berequired to perform basic maintenance.One manufacturer stated that theproposal fails to recognize the unique

relationship a manufacturer has to itsproducts.

FAA Response: The FAA madeeditorial changes to this section in thefinal rule. The FAA revised this sectionto state that part 145 contains the rulesa certificated repair station must followwith respect to the performance ofmaintenance, preventive maintenance,and alterations of an aircraft, airframe,aircraft, engine, propeller, appliance,and component part to which part 43applies. The FAA notes that the revisedlanguage includes ‘‘component part’’rather than ‘‘component part thereof;’’the use of ‘‘component part’’ isconsistent with the terminology used inpart 43. In addition, the FAA finds thatthe term ‘‘maintenance,’’ rather than theterm ‘‘rebuilt,’’ more accuratelydescribes the work performed under thispart and is consistent with industry use.

As proposed in Notice No. 99–09, theFAA is eliminating the limited rating formanufacturers. Because maintenancepractices and aircraft technologies haveevolved since the establishment oflimited ratings for manufacturers, theFAA has determined that all repairfacilities’ systems for inspection,recordkeeping, and quality controlshould be consistent.

In response to comments frommanufacturers, the FAA finds that thereis not a significant difference betweenwarranty work (repairs made by themanufacturer) and maintenance. TheFAA also disagrees with themanufacturers assertion that warrantywork is an extension of themanufacturing process. Once an articlecompletes the manufacturing processand receives its type certificate, anyrepair including warranty work must beaccomplished per an approvedmaintenance program. The differencebetween the manufacturer’s process anda repair station program is therequirement that the article is approvedfor return to service upon completion ofmaintenance.

Manufacturers use numerousmethods, such a maintenance/materialreview boards (MRB) under 14 CFR part21, to correct manufacturing defectswhile articles are still in themanufacturing process. Repairs made toarticles returned to the manufacturer forwarranty work could constitute achange to the article’s type design.Although these procedures areacceptable for manufacturers, they donot provide a means to return the itemto service, for airworthiness release or toapprove the alteration of a type design.A repair of this type may render theitem unairworthy since the definition of‘‘airworthy’’ is that it meets its typedesign and is safe for flight.



As noted in Notice No. 99–09, theFAA will give full consideration to thequality control system established bythe manufacturer to comply with part21. However, the manufacturer’s repairstation will have to operate incompliance with parts 43 and 145.

Section 145.3 Definition of TermsSummary of Proposal/Issue: For

purposes of part 145, the FAA proposedto define accountable manager, actualwork documents, approve for return toservice, approved data, article,certificate holding district office,certificated, composite, computersystem, consortium, directly in charge,facility, housing, maintenance release,overhauled, and signature.

Comments: The commenters generallyasserted that only terms exclusive topart 145 should be defined in part 145.Some of those commenters stated thatthose terms should also be added to 14CFR part 1 to ensure they are usedconsistently throughout the regulations.Other commenters stated that any termnot exclusive to part 145 should bedefined only in part 1. However, somecommenters asserted that all termsshould be defined only in part 1. Inaddition, several commenters suggestedadding definitions for the followingterms: acceptable to the Administrator,airworthy, approved by theAdministrator, authorized inspector,avionics, current as applied to technicalinformation, inspection personnel, jobfunctions, line maintenance,maintenance functions, product, qualityassurance system, quality controlsystem, satellite repair station, selfevaluation, and supervisory personnel.

With regard to the definition of‘‘accountable manager,’’ the commentersgenerally are concerned that theaccountable manager will be heldpersonally liable for business decisionsand stated that the definition conflictswith provisions in parts 121 and 135that indicate the air carrier orcommercial operator has theresponsibility for the work performedfor them by a repair station. Thecommenters recommended clarifyingthe definition to limit the personalliability of the accountable manager.Some commenters suggested the personin this position should be the point ofcontact with the FAA. Othercommenters recommended changing‘‘accountable manager’’ to ‘‘repairstation manager.’’

Many commenters expressed concernwith the definition of ‘‘actual workdocuments’’ and indicated it is easilyconfused with other terms and shouldbe clarified. Some commenters askedwhether the word ‘‘actual’’ refers to the

original work documents. Severalcommenters noted the word ‘‘detailed’’is ambiguous and allows for individualinterpretation, and indicated the word‘‘signed’’ should be changed to permitother methods to be used, such asstamps, initials, and electronicsignatures. Several commentersindicated the definition of ‘‘actual workdocuments’’ is a significant departurefrom current practices and could causedocumentation to become extremelyburdensome.

Many commenters opposed thedefinition of ‘‘approve for return toservice’’ in § 145.3(c). Some of thesecommenters indicated that thedefinition is unnecessary and repeats oris inconsistent with existing regulatoryrequirements, particularly with regardto parts 43 and 65. The commentersproposed revisions to the definition andsuggested moving it to part 43.

One manufacturer supported theproposed definition of ‘‘approved data’’and six commenters recommendedclarifications to that proposeddefinition. Two associations opposedthe definition of ‘‘approved data’’because it is not consistent with part 1or SFAR 36.

Many commenters opposed thedefinition of ‘‘article’’ in § 145.3(e).Several commenters stated thedefinition conflicts with the use of‘‘article’’ in SFAR 36 and as it relates totechnical standard orders.

Commenters who opposed thedefinition of ‘‘certificate holding districtoffice’’ (CHDO) stated the definition issubject to change whenever the FAAreorganizes and changes the names of itsdivisions and offices, and expressedconcern over its application whenmultiple repair facilities are involved.Several commenters stated that thedefinition should state that the CHDOhas responsibility for administering thecertificate of the repair station.

Many commenters supported thedefinition of ‘‘certificated;’’ however,one commenter suggested clarifications.One association opposed the definitionand indicated it is redundant and wouldbe more appropriately included in part1.

Commenters who opposed thedefinitions of ‘‘composite’’ and‘‘computer system’’ suggested thatneither definition is adequate and bothshould be revised and clarified. Thecommenters provided suggestedrevisions for each definition.

Most repair stations, manufacturers,and associations who commented on thedefinition of ‘‘consortium’’ opposed it.Several commenters expressed concernabout the economic impact this couldhave on independent repair stations and

noted that it appears the FAA isproviding an economic advantage totype certificate holders. Thecommenters also noted that it appearsthe FAA is creating a two-tiered systemof repair stations.

The commenters generally opposedthe definition of ‘‘directly in charge’’and offered revisions for clarification.Several other commenters noted that§ 145.3(k) paraphrases language frompart 121, and one association stated thatif the term is adopted in part 145, itshould use the same language as thatfound in part 121. Other commentersnoted there is confusion as to whetherthe term applies to the oversight ofexternal contractors or only internaloperations.

An association stated the definition of‘‘facility’’ is confusing andcontradictory, and should be excluded;however, the association provided analternate definition if the Administratorcan justify its inclusion in the rule.Some commenters recommendedrevising the reference to ‘‘land’’ toinclude public ramp space.

Commenters generally supported thedefinition of ‘‘housing’’ in proposed§ 145.3(m)(1) but recommendedrevisions to the language in proposed§ 145.3(m)(2). The commentersrecommended revising the term‘‘structures’’ to ‘‘method’’ and indicatedthe term ‘‘segregation’’ is subjective.Another commenter strongly opposedinclusion of the definition of housing inpart 145, because it mixes the conceptsof housing, equipment, and facility.

Commenters generally did notsupport the proposed definition of‘‘maintenance release.’’ Somecommenters recommended replacingthe term ‘‘repair station document’’ with‘‘statement’’ to clarify that amaintenance release is not always aseparate document and to ensure therequirements are consistent with part43. One commenter noted that theproposed definition is contrary to parts43, 121, and 135. Another commenterindicated that the maintenance releaseshould apply to all persons authorizedto perform maintenance, preventivemaintenance, or alteration under 14 CFRand that the release provided in part 43would be acceptable.

The commenters generally indicatedthat ‘‘overhauled’’ is already defined inpart 43, and the definition should bemoved to part 1.

Commenters supported the inclusionof a definition for ‘‘signature’’ butgenerally indicated it should be in part1. One commenter commended the FAAfor defining the term ‘‘signature’’ butstated that because the term has causedserious consternation in the industry,



the FAA should publish advisorymaterial governing acceptable means ofcompliance.

FAA Response: Based on thecomments received, the FAA has notincluded in the final rule definitions ofthe following: actual work documents,approve for return to service, approveddata, certificate holding district office,certificated, composite, computersystem, consortium, facility, housing,maintenance release, overhauled, andsignature. However, the FAA hasretained definitions for accountablemanager, article, directly in charge, andline maintenance.

The FAA generally agrees that termsnot unique to part 145, such as‘‘approve for return to service,’’‘‘approved data,’’ ‘‘certificated,’’‘‘maintenance release,’’ and‘‘overhauled,’’ should not be defined inpart 145. In addition, the term‘‘computer system’’ is related to theproposed rating and class system, andno longer needs to be defined for thepurposes of part 145. The term‘‘composite’’ is not unique to part 145,and its common definition is adequatefor the purposes of part 145. Theconcept of a consortium and referencesto actual work documents are notincluded in the final rule and thereforeno longer require definition. Otherterms, such as ‘‘facility’’ and ‘‘housing,’’are adequately described in theparticular sections in part 145 thataddress those subjects and do notrequire further definition. Finally, theFAA has removed the definition of‘‘signature’’ from the final rule. TheFAA notes that it recently has adoptedpolicies and procedures to implementthe requirements of the GovernmentPaperwork Elimination Act, 44 U.S.C.3504, which defines ‘‘electronicsignature’’ and requires Federal agenciesto provide for the option of usingelectronic signatures when practicable.

The FAA disagrees with commenterswho suggest that the term ‘‘accountablemanager’’ should be removed from part145. The FAA has determined that it isnecessary for a repair station to haveone individual who is responsible forensuring repair station operations areconducted in accordance with part 145.However, the FAA has revised thedefinition of ‘‘accountable manager’’ toclarify that the person in this positionis responsible for and has authority overonly repair station operations conductedunder part 145. It was not the FAA’sintent to dictate who is responsible forrepair station operations that areunrelated to part 145, such asaccounting. It also was not the intent ofthe FAA to impose personal liability forrepair station operations on the

accountable manager. The FAA notesthat the term ‘‘accountable manager’’ isconsistent with JAR terminology, and itsuse is consistent with the FAA’sharmonization efforts. Finally, the FAAnotes that the definition in this finalrule states that the accountable managerwill serve as the primary contact withthe FAA as suggested by manycommenters.

Although the term ‘‘article’’ is usedthroughout 14 CFR, the FAA hasdetermined that it is important to definethe term for the purposes of part 145because it encompasses the items onwhich a repair station may performmaintenance. However, the FAA revisedthe definition so that the items listed areconsistent with items on whichmaintenance, preventive maintenance,and alterations are performed under part43.

The FAA disagrees with commenterswho assert that the definition of‘‘directly in charge’’ should not beplaced in part 145 because it is used inpart 121 and that inconsistencies couldarise between the definitions. For theconvenience of the user and because thedefinition specifically addresses theresponsibilities under part 145, the FAAdecided that the definition should beincluded in part 145. The FAA notesthat the definition is consistent with thedefinition found in § 121.378. However,in response to concerns raised by thecommenters, the FAA revised thedefinition of ‘‘directly in charge.’’ Therevised definition clarifies that theperson is responsible for the work of arepair station that performsmaintenance, preventive maintenance,and alterations, or other functionsaffecting aircraft airworthiness. Withregard to the comment regarding workthat is contracted to an outside source,the FAA notes that § 145.217(b)(2)specifically requires that a repair stationremain directly in charge of the workperformed by a noncertificated person.

In response to commenter requests,the FAA has added the definition of‘‘line maintenance’’ to mean anyunscheduled maintenance resultingfrom (1) scheduled checks that containservicing and/or inspections that do notrequire specialized training, equipment,or facilities, or (2) unforeseen events.The definition is necessary to clarify thework that may be performed under§ 145.205(d). The performance of linemaintenance is further discussed in theanalysis of § 145.205(d).

Section 145.5 Certificate andOperations Specifications Requirements

Summary of Proposal/Issue: Proposed§ 145.5(a) would have prohibited anyperson from operating as a certificated

repair station without a repair stationcertificate or operations specifications.Proposed paragraph (b) stated that arepair station could perform work onlyon articles for which it is rated andwithin the limitations of its operationsspecifications. In paragraph (c), the FAAproposed to revise the currentrequirement in § 145.19 that a repairstation display its repair stationcertificate at a place normally accessibleto the public. The FAA proposed thatthe certificate be available for inspectionby the public and the Administrator.Proposed paragraph (d) would havespecified the contents of a repairstation’s operations specifications.

Comments: Commenters generallyopposed the language in proposedparagraph (b) because they felt it mightrestrict a repair station from performingwork not directly related to aviationmaintenance. In addition, an associationstated that the proposed paragraphrepeats the requirements in proposed§ 145.215, now § 145.201. With regard toproposed paragraph (c), commentersgenerally supported not requiringdisplay of a repair station certificate.However, some commenters suggestedmodifying the proposal by permittingonly ‘‘parties of interest’’ or personshaving a ‘‘business need’’ and theAdministrator to inspect the certificate,rather than the ‘‘public.’’ Onecommenter who opposed the proposalasked why a certificate is issued if arepair station is not required to displayit. That commenter also stated it wouldbe more appropriate to require displayof the operations specifications.

FAA Response: This final rulecontains paragraph (a) as proposed witha revision stating that a repair stationalso cannot operate without, or inviolation of, its ratings. This revision isfor clarity and does not place anyadditional burden on a repair station,because ratings are an integral part of arepair station’s certificate. The FAAagrees that proposed paragraph (b) issimilar to proposed § 145.215(a)(1), now§ 145.201(a)(1) and, therefore, has notincluded proposed paragraph (b) in§ 145.5. However, the FAA notes thatproposed § 145.215(a)(1), now§ 145.201(a)(1), did not contain ‘‘andwithin the limitations placed in itsoperations specifications,’’ which wasincluded in proposed § 145.5(b).Therefore, that phrase has been added to§ 145.201(a)(1). With regard to proposedparagraph (c), the FAA disagrees thatonly ‘‘parties of interest’’ or personswith a ‘‘business need’’ should beallowed to inspect the certificate. TheFAA finds that it is unlikely that amember of the general public will ask toinspect a repair station certificate unless



the person has, at least potentially,business with the repair station. Inaddition, determining who is a party ofinterest or whether a particular personhas a business need would be subjectiveand difficult to enforce. Further, theFAA notes that the proposal relaxed thecurrent requirement to always displaythe repair station certificate. Therefore,the FAA has adopted the proposal withthe clarification that the certificate beavailable for inspection by the ‘‘FAA,’’not the ‘‘Administrator,’’ and that therepair station operations specificationsalso be made available. The FAA notesthat operations specifications are anintegral part of the repair stationcertificate. Finally, the FAA has deletedproposed paragraph (d), which wouldhave set forth the contents of theoperations specifications. The proposedparagraph was not regulatory in natureand only identified what the FAA mayinclude in repair station operationsspecifications.

Subpart B—Certification

Section 145.51 Application forCertificate

Summary of Proposal/Issue: The FAAbased this proposed section on current§§ 145.11, 145.13, and 145.71. Theproposal would have revised the list ofitems an applicant is required to submitto the FAA with the application. Inparagraph (a), the FAA proposed that anapplicant submit (1) a copy of the repairstation manual to the Administrator forapproval; (2) a list by type, make, ormodel, as appropriate, of the aircraft,airframe, aircraft engine, propeller,appliance, component, or part thereof,for which an application is made; (3) astatement signed by the accountablemanager that the procedures describedin the repair station manual are in placeand meet the requirements of theapplicable regulations; (4) anorganizational chart with names andtitles of management and supervisorypersonnel; (5) a description of theapplicant’s facilities, including thephysical address; and (6) a list ofmaintenance functions to be contractedout.

Proposed paragraph (b) would haverequired that the equipment, personnel,technical data, and housing andfacilities required for the certificate andrating be in place at the time ofcertification by the Administrator.

In proposed § 145.51(c), the FAAexpanded the scope of current § 145.71by permitting an applicant locatedoutside the United States to obtain arepair station certificate if it maintainsforeign-registered aircraft operatedunder the provisions of part 121 or part

135, or aircraft engines, propellers,appliances, components, or parts thereoffor use on such aircraft. In addition, theproposal (1) required the applicant todemonstrate that required fees havebeen paid and (2) codified the FAA’sexisting practice of requiring that arepair station located outside the UnitedStates complete in English anapplication for a repair stationcertificate.

Proposed § 145.51(d) would havepermitted all consortiums that functionas a single entity with regard to qualitycontrol and quality assurance functions,that hold an approved type certificate,and that perform maintenance,preventive maintenance, or alterationsof that type-certificated product andcomponents thereof to apply for a repairstation certificate under this section.

In proposed paragraph (e), the FAAaddressed applications for additionalratings or renewal of repair stationcertificates.

Comments: Many commentersquestioned the reference in proposedparagraph (a)(1) to an approved ratherthan accepted repair station manual.Some of these commenters stated thatuse of the word ‘‘approved’’ applies amore stringent standard to repairstations than to other certificate holders.With regard to proposed paragraph(a)(2), some commenters suggestedrequiring a listing by model series.Some commenters stated that a listingby parts is burdensome and wouldgenerate excessive paperwork and costs.One commenter recommended revising‘‘part’’ to read ‘‘part family.’’

Commenters generally opposedrequiring the accountable manager tosign a statement that procedures are inplace that meet the requirements of part145. One commenter noted that theapplication process and subsequentFAA surveillance will ensurecompliance with part 145.

Commenters stated that theorganizational chart should containfunctional titles only. Thosecommenters opposed including namesin the chart; some commenters statedthat if names are included, the FAAmust understand that those nameswould be current only at the time ofapplication submission. Somecommenters noted that currentpersonnel assignments will be includedin the required repair station roster.Another commenter recommendeddeleting this requirement because theinformation will be included in therepair station manual. One associationstated that FAA approval of a repairstation’s organizational chart andpersonnel assignment is inappropriate.

Some commenters suggested requiringonly a general description of theapplicant’s housing and facilities underproposed paragraph (a)(5). Anassociation contended that the proposedparagraph repeated the requirements inproposed § 145.207(c), now § 145.209(c).That association also opposed requiringan applicant’s physical address in theapplication.

With regard to proposed paragraph(a)(6), commenters stated that‘‘maintenance functions’’ is notadequately described; some commenterssuggested using ‘‘job function’’ as setforth in appendix A. A few commentersindicated that only maintenancefunctions to be contracted tononcertificated persons should be listedin the application. Some commentersappear to have believed that theproposal would require FAA approvalof vendors. One association stated thatthe required information will beprovided on FAA Form 8130–3 andunder § 145.207(h), now § 145.217(a),and, therefore, should be eliminatedfrom the application.

Commenters opposed the requirementin proposed paragraph (b) thatequipment be in place at the time ofcertification and stated that is would beunnecessarily burdensome. Commenterssuggested requiring only that theequipment be ‘‘available.’’ Commentersnoted that some repair stations maylease equipment. Other commentersnoted that it is only important that theequipment be in place when needed toperform the work.

Commenters stated that proposedparagraph (c) should not be included inthe final rule because the FAA hasstated an intention to eliminate alldistinctions between repair stationslocated inside the United States andthose located outside the United States.Unions noted that the proposal does notrequire repair stations located outsidethe United States to comply with drugand alcohol testing programs applicableto repair stations located in the UnitedStates. Some unions and members of theU.S. Congress also urged reinstating theneed-based requirement for repairstations located outside the UnitedStates. Some manufacturing associationsopposed a need-based requirement andstated that market forces will determineif a repair station is ‘‘necessary.’’

Commenters generally opposedproposed paragraph (d), whichrecognized consortiums that operate asa single organization. Some commentersfelt that the proposal would provide aneconomic advantage to European repairstations. One association stated that theestablishment of requirements for



satellite repair stations make thisprovision unnecessary.

Comments varied with regard toproposed paragraph (e). Somecommenters recommended alternativelanguage, for example, referring tochanges to ratings instead of additionalratings. Another commenterrecommended deleting the paragraphand adding the requirements toproposed § 145.57(b).

FAA Response: In this final rule,paragraph (a)(1) references a repairstation manual ‘‘acceptable to the FAA.’’The FAA has not included therequirement for approval of the repairstation manual in § 145.207 of this finalrule. In addition, the FAA has added arequirement in paragraph (a)(2) forsubmission of the applicant’s qualitycontrol manual as required by§ 145.211(c). The requirement for aquality control manual is explained inthe preamble discussion of § 145.211.The FAA has revised paragraph (a)(3)(proposed paragraph (a)(2)) by using theterm ‘‘article’’ rather than ‘‘aircraft,airframe, aircraft engine, propeller,appliance, component or part thereof.’’Commenters interpreted proposedparagraph (a)(2) to require a listing bytype, make, model, or ‘‘part’’ of thearticle for which the application ismade. The final rule requires, as did theproposal, listing only the type, make, ormodel of the article for whichapplication is made. The FAA notes thatsome repair stations work only on partsand therefore the type, make, or modelfor that part would be required.

Based on commenter opposition, theFAA has eliminated the proposedrequirement for the accountablemanager to sign a statement thatprocedures are in place that meet therequirements of part 145.

Paragraph (a)(4) is adopted asproposed. The FAA disagrees withcommenters who suggest that onlyfunctional titles should be included onthe organizational chart. The FAA findsthat it is important to the certificationprocess that a repair station demonstratethat qualified personnel are assigned tomanagement and supervisory positions.The FAA notes that although personnelassignments may change aftercertification, current management andsupervisory assignments must bemaintained in the roster required by§ 145.161. In response to onecommenter, the FAA notes that theorganizational chart in the repair stationmanual does not require individualnames.

The FAA has adopted paragraph (a)(5)as proposed with minor editorialchanges. Requiring only a generaldescription of facilities would lead to

subjective determinations of what kindof description is adequate. In addition,the FAA finds it is necessary to have acomplete description, including thephysical address of the repair station,for the certification process. The FAArecognizes that this information alsowill be included in the repair stationmanual. However, the FAA notes thatthe information in the manual must bekept current after the certificationprocess; therefore, it performs anadditional function.

The FAA has adopted paragraph (a)(6)as proposed with minor editorialchanges. The FAA notes that theapplication must include only the list ofmaintenance functions to be contractedout, not a list of vendors for approval.The FAA does not agree that thisrequirement should be restricted tomaintenance functions contracted tononcertificated persons. The FAA findsthat although this information must bemade available to the FAA under§ 145.217(a), the information isimportant to the certification processand must be included in theapplication. The final rule explicitlyprovides that the list of maintenancefunctions to be contracted out is subjectto the FAA’s approval. The FAA notesthat under the proposal, thisinformation also was subject to FAAapproval because it was included in theproposed repair station manual, whichwas an approved manual. In response tothe comments regarding the meaning of‘‘maintenance functions,’’ the FAAnotes that maintenance functionsinclude those individual tasks thatcomprise the maintenance, preventivemaintenance, and alterations required toreturn an article to service.

This final rule also includesparagraph (a)(7), which requires that anapplicant for a repair station certificatesubmit a training program for approvalin accordance with § 145.163. Under theproposal, the training program wouldhave been submitted as part of therepair station manual, which, aspreviously noted, was proposed to be anapproved manual. The FAA notes that§ 145.163(a) contains a delayedcompliance date; therefore, an applicantfor a repair station certificate would notbe required to submit a training programwith its application until the datespecified in § 145.163(a).

The FAA has revised paragraph (b) topermit a repair station to meet theequipment requirement by having acontract acceptable to the FAA thatensures the equipment will be availablewhen the relevant work is performed.Such arrangements may include leaseagreements and rental agreements. Thiswill accommodate those repair stations

that do not plan to purchase expensiveequipment that may not be usedregularly. The FAA will review thecontract during the certification process,particularly with respect to theapplicant’s ability to obtain theequipment when the relevant work isperformed. However, this provisiondoes not relieve the applicant fromhaving the equipment in place andavailable for inspection at the time ofcertification. The applicant need notphysically retain the equipment aftercertification, but the FAA hasdetermined that it is necessary that theapplicant have the equipment in placeduring the certification process. TheFAA will observe the placement of theequipment, whether the equipmentworks, and whether the applicant canuse the equipment properly. The FAAnotes that the repair station must haveprocedures in place for ensuring theequipment is calibrated properly, ifapplicable, at the time of use.

With regard to proposed paragraph(c), the FAA has eliminated as many ofthe distinctions as possible betweenrepair stations located inside the UnitedStates and those located outside theUnited States. However, the FAA hasdetermined that the proposedapplication process distinctions arenecessary. In response to commenters’concerns, the FAA notes that theproposed rule would require, exactly asdoes the current § 145.71, that thecertificate/rating applied for benecessary for maintaining or alteringU.S.-registered aircraft and their parts,or foreign aircraft/parts operated underpart 121 or part 135.

With regard to requiring personnel ofrepair stations located outside theUnited States to comply with U.S. drugand alcohol testing requirements, theFAA previously has found that there aresignificant practical and legal concernsprecluding implementation of the anti-drug rule outside the United States. Inadopting proposed paragraph (c), theFAA has used the word ‘‘articles’’ whereappropriate. The FAA notes thatproposed paragraph (c)(3), whichexplicitly provided that alldocumentation from a repair stationlocated outside the United States had tobe submitted in English, has not beenincluded in this final rule. Thisparagraph was not necessary becauseparagraph (a) requires that allapplications be in a format acceptable tothe FAA, and the FAA has determinedthat only applications in English will beacceptable.

Based on comments opposing theconcept of consortiums, the FAA hasremoved from this final rule anyprovisions for consortiums. The FAA



notes that a rule for consortiums isunnecessary because only a limitednumber of exemptions have been issuedto address this situation. The FAA findsthat these limited requests would bebetter handled on a case-by-case basisunder the part 11 exemption process.

The FAA has adopted paragraph (e) asproposed with minor editorial changes.In addition, the paragraph also appliesto applications for amended certificates.The FAA notes that this paragraphappears as paragraph (d) in this finalrule.

Section 145.53 Issue of CertificateSummary of Proposal/Issue: The FAA

based proposed § 145.53 on current§§ 145.11(b) and 145.71, which addressthe issuance of a repair stationcertificate. The FAA notes that in thisfinal rule, § 145.53 includes therequirements in proposed § 145.2,which addressed repairs stationcertificates issued to persons locatedoutside the United States, includingpersons in countries with which theUnited States has a bilateral aviationsafety agreement (BASA). Comments onproposed § 145.2 will be addressedbelow.

Comments: Some commenters statedthat the proposed language regardingissuance of certificates is ambiguousand unclear. One commenterrecommended returning to the languagein current § 145.11(b). Commenters alsorecommended changing ‘‘organization’’to ‘‘person.’’

Commenters generally supported thelanguage of proposed § 145.2(a).However, one commenter noted thatparagraph (a) does not include thelimitations of proposed § 145.53 andrecommended adding the requirementto demonstrate that a repair stationcertificate is necessary in the interest ofsafety.

Some commenters supported thelanguage of proposed § 145.2(b), now§ 145.53(b). However, a few commentersindicated that the language is redundantand unnecessary because theAdministrator already is given thisauthority by law. One commenteragreed that the requirements for safemaintenance should not depend on thelocation of the repair station but isconcerned that proposed § 145.2(b) doesnot address repair stations located incountries for which BASAs with theUnited States do not exist.

Many commenters are concerned withthe FAA giving its oversightresponsibility to foreign governments. Inaddition, some members of the U.S.Congress noted that it appears repairstations located outside the UnitedStates will be regulated less stringently

than facilities based in the UnitedStates. They assert that the safetyrequirements imposed on repair stationslocated in the United States should beimposed on repair stations locatedoutside the United States. Thecommenters added that the FAA has notmade a case for allowing repair stationslocated outside the United States toobtain FAA approval for the solepurpose of siphoning business fromdomestic facilities.

One foreign airline opposed proposed§ 145.2(b) because requiring repairstations located outside the UnitedStates to comply with all of part 145 isinconsistent with established BASAs.

FAA Response: As previously noted,the FAA has moved the provisions inproposed § 145.2 to § 145.53 in this finalrule because both sections deal with theissuance of repair station certificates. Inaddition, the word ‘‘organization’’ hasbeen changed to ‘‘person’’ forconsistency throughout the rule. TheFAA notes that ‘‘person’’ is defined inpart 1.

In response to commenters’ concernsabout ambiguity in proposed§ 145.53(a), the FAA has reinstated thelanguage found in current § 145.11(b),with minor editorial changes. In thisfinal rule, § 145.53(a) applies to allrepair stations, except those repairstations located in a country with whichthe United States has a BASA.Paragraph (a) provides that a personwho meets the requirements of part 145is entitled to a repair station certificateand ratings, prescribing operationsspecifications and limitations necessaryin the interest of safety.

The FAA has included the text ofproposed § 145.2(b), which applies torepair stations located outside theUnited States in countries with whichthe United States has a BASA. Inresponse to commenters’ concernsregarding surveillance of these repairstations, the FAA notes that the localcivil aviation authorities will handlecertification tasks for those countrieswith which the United States has asigned BASA and associatedmaintenance implementationprocedures (MIPs). Repair stations inthese countries often must comply withadditional requirements if thoserequirements are stated in the BASAand MIP. The FAA finds that whereBASAs exist, repair stations undergo anequivalent level of oversight andinspection when compared to repairstations located in the United States.Not only does the FAA perform routineand, when necessary, extra surveillancewhen safety may be compromised, otherJAA-member countries or national(civil) aviation authorities (NAAs)

perform additional surveillance of theserepair stations. Finally, the FAA notesthat paragraph (b) is informational andclarifies how the BASA/MIP processworks in relationship to the part 145certification process. The provisions inproposed § 145.2(b) are adopted as§ 145.53(b) with minor editorialchanges.

Section 145.55 Duration and Renewalof Certificate

Summary of Proposal/Issue: Thisproposed section was similar to current§§ 145.15 and 145.17 but would haverevised the current provision in§ 145.17(b) that a certificate or rating fora repair station located outside of theUnited States expires at the end of 12months after the date on which it wasissued. Instead, the proposal providedthat the certificate or rating wouldexpire after 24 months.

Proposed paragraph (d) would havemodified the current requirement forcertificate renewal by specifying that arepair station located outside the UnitedStates must submit its request forrenewal no later than 90 days before itscurrent certificate expires.

Comments: Many commenters statedthat proposed § 145.55 contradicts theFAA’s intention of removing theregulatory distinctions between repairstations located inside the United Statesand those located outside the UnitedStates. One association stated that theFAA failed to present any justificationfor requiring repair stations locatedoutside the United States to renew theircertificates. That association believesthat the burden of initial certificationand continuous surveillance will bedictated under the BASAs andassociated MIPs. Another commenterstated that requiring a repair stationlocated outside the United States torenew its certificate every 24 months isincompatible with JAR 145. Somecommenters stated that the proposalaffects JAA-certificated repair stationslocated in the United States becausethere are no reciprocal terms for renewaland reevaluation. Two unions opposedexpanding the certificate duration from12 months to 24 months, citing safetyconcerns and the quality of operationsat repair stations located outside theUnited States.

With regard to proposed paragraph(d)(1), a commenter noted that therequirement to apply for a renewal of acertificate 90 days before its expirationwould be impractical if the 12-monthcertificate duration is retained in thefinal rule.

FAA Response: Where appropriate,the FAA has eliminated the regulatorydistinctions between repair stations



located inside the United States andthose located outside the United States.However, to ensure an appropriate levelof oversight, the FAA has determinedthat it is necessary to retain theexpiration and renewal requirements forrepair stations located outside theUnited States. Despite attempts toharmonize with JAA requirements, theFAA notes that the FAA neverconsidered that certificate durationwould be identical for repair stationslocated inside the United States andoutside the United States.

The FAA has retained in this finalrule the 12-month certificate durationperiod found in current § 145.17(b).However, this final rule also allows theFAA to renew the certificate for 24months as currently permitted. The 12-month certificate duration periodprovides the FAA more oversightopportunity, especially when reviewinga renewal request for a newlycertificated repair station locatedoutside the United States. In light of thereturn to the 12-month certificateduration, the FAA has retained thecurrent provision requiring repairstations to apply for renewal within 30days of certificate expiration rather thanthe 90 days proposed. However, theFAA notes that if the repair station doesnot apply before that 30-day period, itmust follow the application proceduresin § 145.51.

The proposal is adopted with thechanges discussed above and someminor editorial changes, includingreordering of the paragraphs.

Section 145.57 Amendment to orTransfer of Certificate

Summary of Proposal/Issue: Theproposal was based on current § 145.15and delineated the circumstances underwhich a repair station had to apply fora change to its certificate. Proposed§ 145.57(b) stated that the privileges ofthe certificate could not be transferred ifthe repair station is sold, leased, orotherwise conveyed. Accordingly, toobtain a repair station certificate, a newowner or transferee of repair stationassets would have had to apply for anew certificate under the provision ofproposed § 145.51.

Comments: With regard to paragraph(a), some commenters recommendedeliminating the requirement that theapplication be on a ‘‘form.’’ Commentersgenerally felt that the prohibitionagainst transfer of repair stationcertificate privileges in proposedparagraph (b) was overly broad.Commenters noted the changes in theaviation maintenance industry,specifically the increasing number ofrepair stations owned by publicly held

corporations. Commenters stated thatthe proposal would decrease the valueof the repair station certificate and thatthere are no similar requirements for aircarriers. Commenters stated that achange in ownership does notnecessarily result in a material changein the operations of the repair station.Commenters complained about therecertification costs if the proposal isadopted.

FAA Response: The FAA has revisedparagraph (a) to clarify that a change toa certificate is necessary only if thecertificate holder changes its location orrequests to add or amend a rating.Therefore, changes to housing andfacilities will not require a change to therepair station certificate. However, theFAA notes that § 145.105 provides thata repair station may not make anychanges to its housing or facilities thatcould have a significant effect on itsability to perform the maintenance,preventive maintenance, or alterationsunder its certificate and operationsspecifications without written approvalfrom the FAA. Paragraph (a) also hasbeen revised to permit applications forchanges in a format acceptable to theFAA rather than on a form as specifiedin the proposal.

In response to commenters’ concernsregarding the transfer of certificates, theFAA has retained the language incurrent § 145.15(b) with minor editorialchanges.

Section 145.59 RatingsSummary of Proposal/Issue: The

proposed section would havecompletely revised the current system ofratings and classes specified in current§§ 145.31 and 145.33.

Comments: The comments to theproposal were previously addressed.

FAA Response: As previously noted,the proposed rating system has beenwithdrawn and will be addressed in asubsequent rulemaking. The final ruleretains the rating system found incurrent § 145.31.

Section 145.61 Limited Ratings

Summary of Proposal/Issue: Proposed§ 145.61 contained the transition periodfor the new ratings system.

Comments: The comments on thetransition period are not longer relevantto this rulemaking but will beconsidered in the subsequentrulemaking.

FAA Response: In this final rule,§ 145.61 retains the provisions forlimited ratings found in current § 145.33with minor editorial changes. The FAAnotes that current § 145.33(b)(13) is notincluded in this final rule. Thatparagraph provided for the issuance of

a limited rating for any other purposedetermined by the Administrator. TheFAA does not issue any ‘‘other’’ limitedratings, except as specifically delineatedin § 145.33(b)(1) through (b)(12), and theprovision in paragraph (b)(13) led repairstations to apply for ‘‘other’’ limitedratings. Not including it in this finalrule will eliminate any confusioncaused by the provision.

Subpart C—Housing, Facilities,Equipment, Materials, and Data

Summary of Proposal/Issue: Theproposed title for subpart C was‘‘Facilities, Equipment, Materials, andHousing.’’

Comments: One association suggestedrevising the title of the subpart to moreclosely parallel the order of subjects inthe subpart.

FAA Response: The FAA agrees andthe title of subpart C is revised to read‘‘Housing, Facilities, Equipment,Materials, and Data.’’

Section 145.101 General

Summary of Proposal/Issue: Thissection is based on current § 145.55with no substantive changes.

Comments: Two associationsquestioned the use of the words‘‘quantity’’ and ‘‘quality’’ because thewords are too subjective. Commentersalso opposed the use of the word‘‘standard’’ because it is ambiguous andbecause subpart C does not containmeasurable standards for repair stationcertification; several of thesecommenters suggested replacing theword ‘‘standards’’ with ‘‘applicablerequirements.’’ Another associationcommented that the proposed sectiondoes not refer to ‘‘housing’’ andrequested that the section be revised toinclude all items necessary for a repairstation to be in compliance with theregulations.

FAA Response: In this final rule, theFAA has not included the words‘‘quantity’’ and ‘‘quality’’ and hasreplaced the word ‘‘standards’’ in theproposal with ‘‘applicable regulations.’’The FAA agrees that the words‘‘quantity’’ and ‘‘quality’’ do not provideobjective regulatory criteria. In this finalrule, a certificated repair station willhave to meet the applicablerequirements for issuance of thecertificate and ratings it holds. Thissection also has been revised toreference housing and datarequirements because both subjects areaddressed in this subpart. The referenceto personnel requirements has beenremoved from this section becausepersonnel are addressed under subpartD.



Section 145.103 Housing and FacilitiesRequirements

Summary of Proposal/Issue: The FAAbased proposed § 145.103(a) on current§ 145.35.

Proposed § 145.103(b) described thefacility and housing requirementscurrently found in § 145.37.Specifically, proposed § 145.103(b)(1)would have required suitable permanenthousing for the largest type and modelof aircraft on which a repair stationperforms maintenance, preventivemaintenance, or alteration. Proposedparagraph (b)(2) would have providedfor the use of permanent work docksand the performance of work outside,where permitted by climatic conditions.Proposed paragraph (b)(3) would haveestablished new provisions to require arepair station that performsmaintenance, preventive maintenance,or alterations on any article ofcomposite construction to meetacceptable process requirements.

Proposed § 145.103(b)(4) through(b)(7) would have revised currentrequirements to apply to the proposedsystem of ratings.

Proposed § 145.103(b)(8) would havespecifically established a requirementfor a repair station to meet any specialfacilities requirements determined bythe manufacturer and approved by theAdministrator for an article or systemon which maintenance, preventivemaintenance, or an alteration isperformed.

In § 145.103(c), the FAA proposed topermit a repair station to performcertain job functions on an aircraft at aplace other than its fixed locationbecause of a special circumstance asdetermined by the Administrator.

Comments: With regard to proposed§ 145.103(a), commenters expressedconcern about the subjective nature ofthe word ‘‘suitable’’ as used to describerequired housing and facilities.Commenters also opposed proposedparagraph (a)(5)(v), which would havepermitted the Administrator todetermine additional circumstancesunder which machines and equipmentshould be segregated. Thesecommenters stated that the proposalwould allow for subjective opinionsfrom individual inspectors. Somecommenters asserted that if proposedparagraph (a)(5)(v) is adopted, the FAAshould establish a mediation process orobjective criteria on which inspectorscould base their decisions.

Various commenters objected toproposed paragraph (a)(6), which wouldhave required a repair station to haveassembly space in an enclosed structurewhere the largest amount of assembly

work is done, on the grounds that repairstations may need to perform workoutside. One commenter stated thatinstead of eliminating work outdoors,the FAA should require adequateprotection from the environment.However, one union supported theelimination of outdoor work. The unionasserted that environmental factors canhave an adverse effect on workingconditions. Opposition also wasexpressed to the requirement inproposed paragraph (a)(7) for a repairstation to have storage facilities usedexclusively to store and protect parts.Commenters argued that the provisionwould require repair stations to buildadditional facilities and that exclusiveuse of a storage facility is not necessaryto ensure an article is airworthy.

Some commenters opposed proposedparagraphs (a)(8) through (a)(10)because the requirements relate toenvironmental codes, and FAAinspectors are not trained to conductOccupational Safety and HealthAdministration (OSHA) audits. Inaddition, some commenters complainedthat those paragraphs lack objectivestandards and, therefore, would besubject to the interpretation ofindividual FAA inspectors.

Some commenters opposed the use ofthe word ‘‘suitable’’ in proposedparagraph (b)(1) on the basis that itcould lead to subjective interpretations.Some commenters suggested that therequirement for enclosed permanenthousing be based on the capability listrather than the repair station rating.Other commenters cited the expenseassociated with requiring such housing.

One commenter stated that the use ofpermanent work docks in proposedparagraph (b)(2) should not be based onclimatic conditions. Another commenterstated that the proposal implies thatpermanent work docks are required towork outside. That commentercontended that work docks are notalways necessary. One commenterinterpreted the proposal as prohibitingwork docks as allowed under thecurrent rules. Another commenteropposed requiring FAA acceptance ofthe work docks on the basis that FAAinspectors are not able to determinewhich work docks are acceptable.

Commenters who opposed proposedparagraph (b)(3) stated that allmaintenance, preventive maintenance,or alterations require meeting acceptableprocess requirements, not just workperformed on composites. Othercommenters recommended deleting thisprovision because it does not relate tohousing and facilities requirements.

One association stated that proposedparagraphs (b)(4) through (b)(7) are

redundant to the requirements ofproposed paragraph (a), which permitsthe Administrator to base the housingand facilities requirements on the ratingheld and the work to be performed.

Commenters suggested possiblealternative language for proposedparagraph (b)(8) to permit facilitiesequivalent to those recommended by themanufacturer.

Comments on proposed paragraph (c)will be addressed in the discussion of§ 145.203, which includes the proposedrequirements in this final rule.

FAA Response: The FAA has revised§ 145.103 in response to issues raised bythe commenters. The FAA agrees thatthe housing and facilities requirementsshould be based on a repair station’sratings and the work performed. Thisfinal rule does not contain many of thespecific requirements opposed by thecommenters. This final rule providesregulatory flexibility and accommodateschanging technologies while helping toensure only airworthy articles arereturned to service.

For example, this rule requires that arepair station have facilities that providefor the proper segregation andprotection of articles, and segregatedwork areas enabling environmentallyhazardous or sensitive operations to beperformed without affecting other work.

The FAA notes that commenters whocontend that the FAA should not issueregulations that address ventilation,lighting, and control of temperature andhumidity appear to believe that this areashould be regulated only by OSHA. TheFAA notes that the regulationsaddressing these issues are intended toensure the quality of maintenanceperformed. If articles and workersperforming maintenance functions onthese articles are not protected fromthese elements, the work may not beperformed properly. Therefore, the issueis one of the quality of the workperformed, which is clearly within thescope of the FAA’s authority.

This final rule includes a requirementthat a repair station with an airframerating must provide suitable permanenthousing to enclose the largest type andmodel aircraft listed on its operationsspecifications. Unlike the currentrequirement, this final rule does notrequire a repair station to providehousing for at least one of the heaviestaircraft within the weight class of therating it seeks. In response to commentsopposing the use of the word ‘‘suitable,’’the FAA finds that because theoperations conducted by repair stationsvary, the agency cannot dictate one typeof permanent housing suitable for eachrepair station. Therefore, the word‘‘suitable’’ is retained in this final rule.



This final rule also provides that arepair station may perform maintenancefunctions outside of its housing if therepair station provides facilities that areacceptable to the FAA and meet therequirements of § 145.103(a) to ensurethe work can be performed inaccordance with the requirements ofthis part and part 43.

The FAA notes that proposedparagraph (c), which is included in§ 145.203 of this final rule, will bediscussed later.

Section 145.105 Change of Location,Housing, or Facilities

Summary of Proposal/Issue: Theproposal specified the types of changesthat would require the Administrator’sapproval. The proposal would haverequired that any change to the locationor facilities of a repair station, includingsubstantial rearrangement of spacewithin its present location, be approvedin advance. The proposal also statedthat a repair station may not operate ata new location until approved by theAdministrator.

Comments: Commenters generallyopposed the proposal. They stated thatthe proposal would lead to subjectiveand inconsistent interpretations byinspectors. Commenters stated that therule should not address ‘‘any’’ change,and only changes that adversely affectthe airworthiness of articles shouldrequire FAA approval. Somecommenters asserted that onlyreductions in space should requireapproval. Other commenters opposedany regulation of changes to housingand facilities. One association opposedthe proposal because there is no safetyjustification for requiring approval torearrange equipment.

FAA Response: In response tocommenters’ concerns, the FAA hasretained the requirements in current§ 145.21 with some changes.Specifically, in this final rule,§ 145.105(a) requires approval only ofchanges to the location of the repairstation’s housing. Paragraph (b) requiresFAA approval of changes to housing orfacilities required by § 145.103 only ifthe change would have a significanteffect on the repair station’s ability toperform maintenance, preventivemaintenance, or alterations under itscertificate and operations specifications.Therefore, not all changes to housing orfacilities will require approval. TheFAA notes that the rule does not requireFAA approval for equipment changesunder this section. Paragraph (c) retainswith minor editorial changes theprovision that the FAA may prescribeconditions and limitations under whichthe repair station must operate during a

change to its location, housing, orfacilities.

Section 145.107 Satellite RepairStations (Proposed §§ 145.107 and145.109)

Summary of Proposal/Issue: In thesesections, the FAA proposed to permit arepair station to establish a satelliterepair station to perform work at a placeother than the repair station’s primaryfacility. Proposed § 145.107(a) describeda satellite repair station and specifiedthe requirements for the certification ofthese facilities. In paragraph (b), theFAA proposed to permit the parent andsatellite repair station to use eachother’s personnel and equipment.

Additionally, in paragraphs (c) and(d) the FAA proposed to codify thecurrent practice that a repair stationlocated within the United States wouldnot be permitted to have a satelliterepair station located outside the UnitedStates. Likewise, a repair station locatedoutside the United States would not bepermitted to have a satellite repairstation located within the United States.

Because proposed § 145.109addressed satellite repair stationoperations, it has been combined with§ 145.107 in this final rule. Proposed§ 145.109 required that a chief inspectoror an assistant chief inspector bedesignated for a satellite repair station.The proposal also required that theinspector be available at the satelliterepair station or, if away from thepremises, by telephone, radio, or otherelectronic means.

Comments: Commenters generallysupported the concept of satellite repairstations. However, the majority ofcommenters requested that the CHDOfor the repair station with managerialcontrol also have responsibility for thesatellite repair station. Commenters alsoindicated that a single point of contactwith the FAA is important.

With regard to satellite repair stationmanuals, commenters requested that asatellite repair station be able tocombine its manual with the manual ofthe managing repair station. Somecommenters suggested that the satelliterepair station’s procedures could be inan appendix to the managing repairstation’s manual. A few commentersstated that one manual would permitone quality control system for themanaging and satellite repair stations,which would promote safety.Commenters also stated that the manualshould be accepted rather thanapproved as provided for in theproposal.

Commenters stated that the word‘‘independent’’ should be removed fromproposed paragraph (b) because it has

not been defined and appears to createanother category of satellite repairstations.

Commenters generally opposedproposed paragraphs (c) and (d) becausethe restrictions from having satelliterepair stations in countries other thanthe country of the managing repairstation hinder the expansion of theaviation industry across internationalborders. Commenters stated that a singlequality control system offers thepotential for a satellite repair station tobe located ‘‘globally.’’ Commentersasked whether a repair station locatedoutside the United States may have asatellite repair station located outsidethe United States and, if so, whether thesatellite repair station must be in thesame country as the managing repairstation.

With regard to proposed § 145.109,commenters opposed the use of theterms ‘‘chief’’ inspector and ‘‘assistantchief’’ inspector. Some commentersstated that part 145 does not requirethose specific positions. The JAArecommended amending the proposal torequire that the inspector be presentwhen there is a need to inspect or returnto service an article. The JAA noted thatit is important to prevent telephone-based judgments made on the basis ofanother person’s observations when anaircraft has been involved in anincident.

FAA Response: The FAA has revisedthis section in the final rule to clarifythe requirements for satellite repairstations. In addition, the final rule doesnot use the term ‘‘parent’’ to describethe managing repair station but ratherrefers to it as the ‘‘repair station withmanagerial control’’ over the satelliterepair station.

The FAA intends that the CHDO forthe repair station with managerialcontrol also hold the satellite’s repairstation certificate. Surveillance will beconducted by the geographic flightstandards district office (FSDO) at therequest of the CHDO. Although asatellite repair station will have its owncertificate, it may not hold a rating notheld by the repair station withmanagerial control. The satellite neednot hold all the ratings held by themanaging repair station. Thisrequirement is in paragraph (a)(1).

With regard to the satellite’s repairstation manual, the satellite may use themanaging repair station’s manual if it isapplicable to the satellite’s operations.The two manuals may not be identicalbecause the operations of the managingand satellite repair stations may not beidentical. It is likely that the satelliterepair station will use portions of themanaging repair station’s manual. The



FAA notes that the manuals could becombined with specific procedures setapart for the satellite repair station.When applying for its certificate, thesatellite repair station must submitwhatever manual it will use. The FAAnotes that the manual must beacceptable to the FAA rather thanapproved by the Administrator, asproposed.

This final rule also requires that theapplicant for a satellite repair stationcertificate submit a quality controlmanual acceptable to the FAA. Like therepair station manual, the qualitycontrol manual may be identical to themanaging repair station’s quality controlmanual, if appropriate. The requirementfor a quality control manual will bediscussed in the analysis of § 145.211.

Paragraph (b) of this final rulecontains the requirements of proposedparagraph (b) and proposed § 145.109.References to ‘‘chief’’ inspector and‘‘assistant chief’’ inspector have beendeleted. The FAA also includedlanguage to clarify that inspectionpersonnel designated for a satelliterepair station must be available at thesatellite repair station any time adetermination of airworthiness or returnto service is made. In othercircumstances, inspection personnelmay be away from the premises butmust be available by telephone, radio, orother electronic means.

This final rule combines proposedparagraphs (c) and (d) and provides thata satellite repair station may not belocated in a country other than thedomicile country of the certificatedrepair station with managerial control.This prohibition is necessary because ofcertification and surveillance issues. Forexample, if the repair station withmanagerial control is located in acountry with whom the United Stateshas a BASA and MIP, certification isaccomplished under the BASA and MIPand surveillance is performed by theCAA of the foreign country. If thesatellite repair station is located inanother country with whom the UnitedStates does not have a BASA and MIP,certification of the satellite repairstation could not be accomplished in amanner consistent with that of therepair station with managerial control.In addition, the entity providingsurveillance of the repair station withmanagerial control would not providesurveillance of the satellite repairstation.

Section 145.109 (Proposed § 145.111)Equipment, Materials, and DataRequirements

Summary of Proposal/Issue: Theproposed requirements were based on

current §§ 145.47 and 145.49. Theproposal would have retained therequirements similar to those of current§§ 145.47(a) and (b), and 145.49(a);however, the proposal would haverequired that tools used to accomplishwork must be those recommended bythe manufacturer or equivalent to themanufacturer’s recommendation, andacceptable to the Administrator. Theproposal also would have required thattools used for product acceptance and/or for making a finding of airworthinessbe tested at regular intervals to ensurecorrect calibration to a standardacceptable to the Administrator.

Comments: Commenters opposedproposed paragraph (a) on the basis thatit precludes repair stations from rentingor leasing equipment. The commentersstated that this option is particularlyimportant for expensive, rarely usedtools.

Commenters stated that proposedparagraph (b) is vague. Somecommenters requested that the FAAdefine a ‘‘standard acceptable to theAdministrator.’’ Other commentersstated that the regulation should statethat the standards be derived fromNational Institute of Standards andTechnology (NIST) standards or‘‘accepted or approved by a nationalgovernment standards agency.’’

Commenters who opposed proposedparagraph (c) stated that the tools andequipment should be required to be inplace only when the work is beingperformed. In addition, somecommenters stated that the proposallimits the repair station’s ability todevelop alternative tooling thatperforms the intended function andwould be acceptable to theAdministrator. A few commentersrecommended eliminating thisparagraph because equipment andtooling already are addressed in§ 43.13(a).

Because the FAA has moved therequirements for a repair station to keepcurrent certain documents fromproposed § 145.201(b) and (c) to§ 145.109 in this final rule, commentson maintaining current documents andpossessing manufacturers’ maintenancemanual requirements in proposed§ 145.201(b) and (c) will be discussedhere. Commenters encouraged the FAAto revise the rule to permit the use ofelectronic databases. Some commentersstated that the rule language shouldreference part 43. Commenters alsoopposed the requirement to always haveall the documents and data listed in thissection. They contended that theinformation is necessary only when thework is being performed. Specifically,commenters stated that there is no need

for a repair station to have all servicebulletins applicable to a part unlesswork required by the particular servicebulletin is being performed. Othercommenters complained that to requirea repair station to maintain all currentmanufacturers’ maintenance manualsrelating to an article when maintenanceis performed is unnecessarily costly.Some commenters requested that‘‘approved technical data’’ be added tothe list of required data.

FAA Response: The FAA hassubstantially revised the proposedrequirements based on the comments.The language adopted in this final ruleis based in part on language provided bycommenters.

In this final rule, paragraph (a)requires a repair station to have theequipment, materials, and toolsnecessary to perform the work under itsrepair station certificate and operationsspecifications in accordance with part43. Although proposed paragraph (a)did not preclude repair stations fromrenting or leasing equipment, the FAAhas revised that paragraph to clarify thatthe equipment must be located on therepair station’s premises and under itscontrol when the work is being done.

The FAA has revised paragraph (b) asproposed to require that a repair stationensure that all test and inspectionequipment and tools used to makeairworthiness determinations arecalibrated to a standard acceptable tothe FAA. The FAA will issue guidanceregarding what standards will beacceptable to the FAA. The FAA hasissued numerous exemptions from thecurrent requirement that calibration beto a standard derived from the NISTwhen the alternative standard has beenaccepted by the NIST as adequate. Theintent of this provision is to providemore regulatory flexibility. The FAAnotes that this paragraph no longerrequires that the equipment becalibrated at ‘‘regular’’ intervals. Theinterval at which measuring and testequipment is calibrated depends on thetype and use of the equipment;therefore, the word ‘‘regular’’ does notadequately describe when theequipment should be calibrated. TheFAA notes that § 145.211(c)(1)(viii)requires that a repair station’s qualitycontrol manual contain a description ofthe systems and procedures forcalibrating measuring and testequipment used in maintaining articles,including the intervals at which theequipment will be calibrated.

Paragraph (c) has been simplified andthe references to appendix A to part 145have been eliminated. This final ruleprovides that equipment, materials, andtools must be those recommended by



the manufacturer of the article, or atleast an equivalent, and acceptable tothe FAA. In response to the comment,the FAA notes that the rule permits arepair station to develop its own toolingprovided it is at least equivalent to thatrecommended by the manufacturer andacceptable to the FAA.

The FAA has replaced proposedparagraph (d) with requirements similarto those in proposed § 145.201(b) and(c). The FAA has determined thatrequirements for maintainingdocuments and data are moreappropriately located in § 145.109. Thisfinal rule requires each repair station tomaintain, in a format acceptable to theFAA, the documents and data necessaryto perform work under its repair stationcertificate and operations specificationsin accordance with part 43. Thedocuments and data must be currentand accessible when the relevant workis being done. As suggested by onecommenter, the FAA has added areference to other applicable dataacceptable to or approved by the FAA.

In addition, the final rule permits therequired documents and data to bemaintained in a format acceptable to theFAA. As previously noted, this languagewill permit the information to be storedelectronically and give the FAA thediscretion to permit the storage ofinformation through other media, ifappropriate.

Regarding the document and datarequirements, the FAA notes that§ 43.13 already requires that work beperformed in accordance with themethods, techniques, and practicesprescribed in the current manufacturer’smaintenance manual or Instructions forContinued Airworthiness or othermethods, techniques, and practicesacceptable to the Administrator.

Subpart D—Personnel

Section 145.151 PersonnelRequirements

Summary of Proposal/Issue: In§ 145.151 the FAA proposed to establishthe same general personnelrequirements for repair stations locatedinside the United States as those locatedoutside the United States. The FAA alsoproposed to require each certificatedrepair station to designate an individualas the accountable manager.

Comments: For reasons previouslydiscussed, commenters opposedrequiring a repair station to designate anaccountable manager as proposed inparagraph (a)(1). Commenters opposedthe requirement in proposed paragraph(a)(2) for a ‘‘sufficient’’ number ofpersonnel on the basis that it is vague.Some commenters stated that the level

of staffing is a business decision. Anassociation stated that this languagemay prohibit smaller facilities frommeeting the requirements of theparagraph because the workload of asmall repair station can fluctuatedramatically during a given time period.

One commenter asked whether‘‘maintenance operations’’ as used inproposed paragraph (a)(3) includealterations. A few commentersrecommended removing the word‘‘noncertificated’’ from that paragraph.Other commenters stated the proposalcould require all noncertificatedemployees, such as buildingmaintenance personnel, to be tested.Some commenters stated that requiringpractical tests of noncertificatedemployees would be impracticalbecause the repair station would have todevelop and administer tests for everyconceivable job function.

With regard to proposed paragraph(c), commenters again criticized the useof the word ‘‘sufficient.’’ Commentersalso criticized the use of the word‘‘technique’’ because it is unrelated to astandard.

FAA Response: The FAA has madeeditorial changes, removed redundantrequirements, and reorganized thissection for clarity. The languageadopted in the final rule is based, inpart, on language proposed bycommenters.

As discussed in the analysis of§ 145.3, the FAA has retained theposition of accountable manager. TheFAA notes that a repair station is notrequired to hire an individual to fill thisposition but may designate a currentemployee as the accountable manager.In addition, a satellite repair stationneed not designate an accountablemanager; the accountable manager forthe repair station with managerialcontrol over the satellite repair stationmay serve in this position.

The FAA has retained therequirement for a ‘‘sufficient’’ number ofemployees in paragraph (c). Becauserepair stations vary in size, the FAAcannot require a specific number ofemployees, and the languageaccommodates this situation. The FAAnotes that the rule does not require arepair station to always maintain acertain staffing level but rather requiresit have a sufficient number of employeesfor the work being performed.

In response to one commenter’sconcern, paragraph (d) in the final ruleapplies only to employees who performmaintenance functions under part 145.The FAA disagrees with thecommenters who suggested removingthe word ‘‘noncertificated.’’ The finalrule requirement that a repair station

determine the abilities of its employeesbased on training, knowledge,experience, or practical tests appliesonly to noncertificated employees whoperform maintenance functions. TheFAA notes that a determination basedon these criteria is not required for part65 certificated employees.

In response to the commenter whoasked whether maintenance operationsinclude alterations, the FAA previouslynoted that maintenance functions(proposed as maintenance operations)include all the tasks required to performmaintenance, preventive maintenance,and alterations.

Section 145.153 Supervisory PersonnelRequirements

Summary of Proposal/Issue: In thissection, the FAA proposed minimumpractical experience and trainingrequirements for supervisory personnel.The proposal also would have expandedthe Administrator’s ability to determinethe competence of all supervisorypersonnel. In addition, this proposedsection would have required minimumexperience and training requirementsfor inspection personnel employed atrepair stations.

Comments: Commenters generallyopposed this proposed section.Commenters questioned why theproposal requires part 65 certification ofsupervisors. Some of these commentersquestioned why a certificated supervisoralso must have 18 months of experience.One association asked what constitutes18 months of experience: for example,performing the maintenance functiononce a month or once in 18 months.Commenters opposed the proposedrequirement for a ‘‘sufficient’’ number oftrained personnel to supervise themaintenance performed and suggestedreplacing the term ‘‘trained personnel’’with ‘‘qualified personnel.’’Commenters asked for clarification ofthe difference between a ‘‘supervisor’’and a ‘‘person directly in charge.’’ Inaddition, commenters opposed the FAAdetermining the appropriate ratiobetween supervisors and apprentices orstudents. Commenters also opposed theproposal to permit the FAA to evaluatesupervisory personnel, particularlybased on testing. Commenters felt thisprovision is overreaching and mayallow abuse and personal bias.

Commenters stated the proposal doesnot eliminate the distinctions betweenrepair stations located inside the UnitedStates and those located outside theUnited States. Unions opposedexempting foreign repair stationpersonnel from part 65 certificationrequirements.



FAA Response: The FAA has revisedthis section to clarify its requirementsand remove redundant provisions. Inaddition, this section no longeraddresses inspection personnelrequirements. For clarity, the FAAdetermined that it would be better toaddress inspection personnelrequirements in a separate section.

The final rule retains the requirementfor a ‘‘sufficient’’ number of personnelto perform supervisory duties. Aspreviously noted, because repairstations vary in size, the FAA cannotrequire a specific number ofsupervisors. The final rule also requiresthat supervisors hold part 65certification if employed by a repairstation located inside the United States.However, the rule does not requiresupervisors employed by a repair stationlocated inside the United States to haveeither 18 months of experience or betrained or thoroughly familiar with themeans used to accomplish themaintenance work being supervised, asproposed. The FAA notes it is notnecessary to set forth such experiencerequirements in this rule because theproposed experience requirements aresimilar to the 18-month practicalexperience requirement in § 65.77 formechanics and § 65.101 for repairmen.However, supervisors at repair stationslocated outside the United States arerequired under the final rule to meet theproposed experience requirementsbecause they are not required to havepart 65 certification. During thecertification process of a repair stationthat is located outside of the UnitedStates, the FAA assesses the foreigncountry’s licensing procedures todetermine if they meet minimum safetystandards that are acceptable to theFAA. Also, under BASAs with othercountries, the FAA can assesses theadequacy of licensing procedures eitherseparately or as one of the elements ofthe MIP.

If the FAA determines that a country’slicensing procedures are not acceptable,the FAA has the discretion to requirethat the personnel performing coveredmaintenance functions in those repairstations be certificated under part 65before the station will be issued a part145 certificate. In the case of a BASAwhere the Civil Aviation Authority(CAA) does meet all of the FAAlicensing standards, the Administratorwould require the CAA to addadditional requirements. In addition,part 145 sets forth minimum experienceand knowledge requirements for foreignmaintenance personnel. Adequatecontrols are in place that allow theAdministrator to exercise discretion inthe interest of safety and to ensure that

only qualified maintenance personnelperform work in repair stations locatedoutside the United States. The FAAfinds that requiring all foreignmaintenance personnel to meet the part65 certification requirements would notserve any safety purpose, and it wouldplace an unnecessary burden on boththe FAA and the foreign maintenancepersonnel. Imposing such requirementswould impair the exercise of discretion,and thus not be appropriate.

Finally, this final rule includes therequirement that supervisorsunderstand, read, and write English.The FAA notes that the proposalcontained such a requirement forsupervisors at repair stations locatedoutside the United States. Supervisors atrepair stations located inside the UnitedStates are required to be certificatedunder part 65; that part requires thoseindividuals to read, write, speak, andunderstand English.

The final rule does not dictate theratio of supervisors to individuals beingsupervised but leaves this decision tothe repair station. With regard to thedifference between a ‘‘supervisor’’ and a‘‘person directly in charge,’’ thedefinition of ‘‘directly in charge’’provides that the person need notphysically observe and direct eachworker constantly but must be availablefor consultation on matters requiringinstruction or decision from higherauthority. A supervisor wouldphysically observe and direct a workerwhen needed.

The FAA has not included proposedparagraph (g) in the final rule. Thisparagraph provided for FAA evaluationof supervisory personnel based onemployment records, tests, or any othermethods. The FAA has determined thatsuch a provision is not necessarybecause this section already requiressupervisory personnel to meet certainqualifications.

Section 145.155 (Proposed § 145.153)Inspection Personnel Requirements

Summary of proposal/issue: Proposed§ 145.153 would have addressedinspection personnel requirements.

Comments: Commenters opposed theproposal to permit the FAA to evaluateinspection personnel, particularly basedon testing. Commenters felt thisprovision is overreaching and mayallow abuse and personal bias.

FAA Response: For clarity, the FAAhas addressed inspection personnelrequirements in this separate section.The FAA notes that minimumqualification requirements, currentlyfound in § 145.45, were inadvertentlyomitted from the proposal. The finalrule contains qualification requirements

similar to those found in the currentrule. The final rule does not require thatinspection personnel hold part 65certification. However, the inspectorsmust be thoroughly familiar withapplicable regulations and inspectionmethods, techniques, practices, aids,equipment, and tools used to determinethe airworthiness of an article. Inaddition, they must be proficient inusing various types of inspectionequipment and visual inspection aidesappropriate for the article beinginspected. Finally, the final ruleincludes the requirement that inspectorsunderstand, read, and write English.

The FAA notes that this section doesnot include the proposed provision thatwould permit the FAA to evaluateinspection personnel based onemployment records, tests, or any othermethods. As noted in the discussion of§ 145.153, inspection personnel arealready required to meet certainqualifications.

Section 145.157 (Proposed § 145.211(c))Personnel Authorized To Approve anArticle for Return to Service

Summary of Proposal/Issue: Proposed§ 145.211(c) would have set forth thequalifications for inspectors authorizedto perform inspections under thatsection.

Comments: No comments werereceived on this proposal.

FAA Response: The FAA hasdetermined that the requirements forpersonnel authorized to return an articleto service are more appropriatelyincluded in subpart D, which containsall other personnel requirements, ratherthan subpart E, which addressesoperating rules. The final rule requiresthat personnel authorized to return anarticle to service be part 65 certificatedunless employed by a repair stationlocated outside the United States. Thefinal rule requires personnel employedby a repair station outside the UnitedStates to have 18 months of practicalexperience and be thoroughly familiarwith the applicable regulations andproficient in the use of the variousinspection methods, techniques,practices, aids, equipment, and toolsappropriate for the work performed andapproved for return to service. Suchexperience requirements are notnecessary for personnel authorized toapprove an article for return to servicewho are employed by a repair stationlocated in the United States, becausethose personnel hold part 65certification. Finally, the final rule alsoincludes the requirement that personnelauthorized to approve an article forreturn to service must understand, read,and write English.



Section 145.159 (Proposed § 145.155)Recommendation of a Person forCertification as a Repairman

Summary of Proposal/Issue: Theproposal would have required a repairstation to recommend a sufficientnumber of repairmen to meet allapplicable requirements of this part ifthe repair station chooses to userepairmen to satisfy these requirements.The FAA also proposed to deleteprovisions of current § 145.41(b), whichrequired that each person recommendedmust be at or above the level of shopforeman or department head or beresponsible for supervising the workperformed by the repair station. Section145.41(b) also permitted a repair stationto recommend any employee who meetsthe requirements of current § 65.101 forcertification as a repairman.

Consistent with proposed§ 145.153(g), proposed § 145.155(b) alsowould have permitted the Administratorto evaluate any repairman’s ability byinspecting employment and experiencerecords and/or by administering an oralor practical test.

Comments: Comments on theproposed language varied. Oneassociation contended that therequirements under § 65.101 are explicitenough that proposed § 145.155(a)(3)and (b)(1) through (b)(3) is notnecessary. That association stated thatthe proposed language is confusingbecause it could be interpreted asimposing requirements in addition tothose found in § 65.101. Commentersrecommended eliminating proposedparagraph (b), which permittedsubsequent FAA evaluation of arepairman based on employment, tests,or any other methods.

FAA Response: The FAA hassubstantially revised the proposal toaddress commenters’ concerns. Thisfinal rule simply requires a repairstation who chooses to use repairmen tomeet the applicable personnelrequirements of this part to certify thateach person recommended is employedby the repair station and meets theeligibility requirements of § 65.101. Therule no longer requires a repair stationto certify that the person has thenecessary training and practicalexperience to perform the workfunctions for which certification isrequired. It was not the FAA’s intent toimpose training or experiencerequirements beyond those imposed in§ 65.101.

Current § 145.41 requires that acertificated repair station recommend atleast one person for certification as arepairman. Under this final rule, arepair station is not required to

recommend any specific number ofrepairmen. However, the FAA notes thata repair station must have anappropriate number of repairmen for thework to be performed under itscertificate and ratings. In addition, thisfinal rule does not contain the proposalregarding subsequent evaluation of arepairman.

Section 145.161 (Proposed § 145.157)Records of Management, Supervisory,and Inspection Personnel

Summary of Proposal/Issue: The FAAbased this proposed section on current§ 145.43. The FAA proposal continuedto require a repair station to retain aroster of supervisory (includingmanagement) personnel and inspectionpersonnel. In paragraph (a)(3) the FAAproposed to establish a new requirementfor a repair station to retain a roster ofthose certificated personnel authorizedto sign a maintenance release forapproval for return to service of analtered or repaired article.

The proposal included currentrequirements relating to the retention ofinformation indicating compliance withexperience requirements. The FAAproposed to modify the current rule byrequiring that these rosters be keptcurrent.

Comments: Commenters suggestedrevisions to the proposed language,including elimination of the term ‘‘chiefinspector.’’ A few commentersrequested that the FAA define the term‘‘technical supervisors’’ as used inparagraph (a)(1). Some commentersopposed the requirement that repairstations must prepare a summary of pastemployment history and total years ofexperience for individuals listed on therosters. Commenters stated that the onlyappropriate information to include inthe summary is the individual’s title,scope of present assignment, and FAAcertificate number. Commenters alsostated that the rule should accommodatetemporary assignments withoutrequiring updated rosters.

FAA Response: In response to arequest to define ‘‘technicalsupervisors’’ as used in proposedparagraph (a)(1), the FAA has revisedthat paragraph to state ‘‘supervisors whooversee maintenance functions.’’ Inaddition, the FAA has deleted the term‘‘chief inspector’’ from paragraph (a)(2).The FAA has determined that thesummary required in paragraph (a)(4) isnecessary to assist the agency indetermining that an individual isqualified for the position held at therepair station. In addition, the FAAnotes that the summary is a currentrequirement under § 145.43. The FAAhas revised proposed paragraph

(a)(4)(iii), which would have requiredthat the summary include all pastemployment records with the names ofemployers and periods of employmentby month and year. The final rulerequires only past relevant employmentwith the names of employers and periodof employment.

The FAA has added language inparagraph (b) to provide repair stationswith 5 business days for updatingrosters. This revision should precludethe necessity for daily revisions ofrosters.

Section 145.163 (Proposed § 145.159)Training Requirements

Summary of Proposal/Issue: The FAAproposed to require each certificatedrepair station to establish a trainingprogram approved by the Administratorthat consists of initial and recurrenttraining for employees assigned toperform maintenance, preventivemaintenance, or alteration functions.The FAA proposed to require thatrecords of accomplished training bedocumented by the repair station in aform acceptable to the Administratorand that these records be retained forthe duration of each individual’semployment.

Comments: Commenters voicedvarious criticisms about the proposedtraining requirements. Manycommenters complained that theproposal does not contain specificrequirements and stated that the FAAshould issue advisory material forcomment before publication of the finalrule. Commenters wanted to know thetype of training required, the frequencyof training, and what is required toquantify and qualify on-the-job training.Some commenters stated that a ‘‘onesize fits all’’ rule will not work for smallrepair stations. One association statedthat the hiring practices of small repairstations or the performance of limitedand specifically defined, repetitive workdoes not require continuous trainingand retraining. Many commenters statedthat the training program should beacceptable to the Administrator ratherthan approved by the Administrator.The NTSB noted that the minimumstandards for the recurrent training ofpilots, flight attendants, and groundpersonnel involved in deicing andcurrency of job-specific skills is no lessimportant for mechanics. The NTSBstated that the final rule should specifya reasonable quantity of recurrenttraining. An association representingEuropean air carriers stated that theFAA should not require trainingprograms for foreign repair stations thatare significantly different than thoseused by the JAA. Unions and an



association expressed support for atraining requirement for repair stations.

With regard to the recordkeepingrequirement, commenters stated that theFAA should specify which items toinclude in the records rather than statethat the records should be in a formatacceptable to the Administrator.Commenters also recommended thattraining records be maintained for 2years only.

FAA Response: The FAA hasdetermined that adoption of a trainingprogram for repair station employeeswho perform maintenance, preventivemaintenance, or alterations wouldenhance aviation safety by helping toensure that those employees are fullycapable of performing the work. It alsowould promote a level of safetyequivalent to that of maintenanceperformed under parts 121 or part 135.

The FAA disagrees with commenterswho contend that training programsshould be accepted rather thanapproved. To ensure that the right typeof program and amount of training istailored to each individual repairstation, the FAA has elected to approvetraining programs rather than acceptthem. The FAA recognizes that thetraining programs may vary dependingon the size of the repair station and thenature of the work performed.Therefore, the FAA is not prescribingspecific training requirements but willapprove individual training programssubmitted by repair stations. Before theeffective date of the final rule, the FAAwill issue advisory material regardingthe required training program. The FAAdoes not anticipate that the trainingprogram requirement will beburdensome; many repair stationsalready provide employee training. Inaddition, the FAA anticipates thattraining requirements may be met byattending trade or technical societyseminars and through on-the-jobtraining. The FAA notes that repairstation personnel performingmaintenance for certificate holdersconducting operations under part 121 orpart 135 already must undergo training.

In adopting this rule, the FAA revisedthe proposal to require repair stations toretain employee training records for aminimum of 2 years. With regard tocommenters’ concerns regarding thecontent of the training records, the FAAnotes that the language ‘‘in a formatacceptable to the FAA’’ refers to themedia by which the records will besubmitted, for example electronically.When submitting its training programfor approval, a repair station shoulddelineate the items it intends to includein the records.

The FAA also disagrees that repairstations located outside the UnitedStates that operate differently from JAA-approved repair stations be exempt fromthe training program requirement. Thefinal rule requires each repair station toimplement a training program that istailored to their individual operation.This may require that JAA training beincluded in the training programs forrepair stations that are JAA-approved.This is not limited to only those repairstations located outside the UnitedStates. Likewise, repair stations locatedoutside the United States that are notJAA-approved won’t be required toinclude JAA training if this trainingdoes not reflect their operations. TheFAA has taken great effort tostandardize requirements for all repairstations regardless of their location toensure only the best trained andqualified workforce performsmaintenance on U.S.-registered articles.

To provide time for repair stations todevelop their training programs, thisfinal rule provides that beginning 2years after the effective date of the rule,each applicant for a repair stationcertificate must submit a trainingprogram for approval by the FAA. Arepair station certificated before thatdate must submit its training programfor approval on the last day of themonth in which its certificate wasissued. Therefore, if a repair station wasissued a certificate in May 1995, thatrepair station must submit its trainingprogram to the FAA by May 31, 2 yearsafter the effective date of the final rule.This compliance schedule allows eachcertificated repair station at least 2 yearsto develop its program. The FAAadopted this staggered complianceschedule for certificated repair stationsto ensure that all training programs arenot submitted to the agency at one time.A repair station may submit its trainingprogram before the deadline if itchooses to do so.

Subpart E—Operating Rules

Section 145.201 (Proposed § 145.215)Privileges and Limitations of Certificate

Summary of Proposal/Issue: Theproposal would have modified current§ 145.51 to include references topreventive maintenance and to permit arepair station to arrange for themaintenance, preventive maintenance,or alteration of any article for which itis rated at another organization under itsquality control system. The FAAproposed to delete the currentreferences to the performance of 100-hour, annual, or progressiveinspections.

In addition, the FAA proposed inparagraph (b)(3) that a repair stationcould not approve for return to serviceany experimental aircraft after a majorrepair or major alteration unless thework was performed in accordance withmethods and technical data acceptableto the Administrator.

Comments: Commenters stated that arepair station should have to survey acontractor only if it is not certificated;those commenters noted that contractorsthat are certificated repair stations willhave a quality control system.Commenters also noted that theproposal permitted a repair station toperform work on experimental aircraft,but the FAA has not established whatmethods and technical data would beconsidered acceptable to theAdministrator. One commenterquestioned how the FAA wouldadminister this proposal for the variouspurposes for which an experimentalcertificate is issued. Commentersrecommended using the word ‘‘article’’in the final rule where appropriate. Onecommenter noted that the proposal didnot include the provision in current§ 145.51 that permitted a repair stationto perform maintenance at a place otherthan the repair station. Anothercommenter stated that proposedparagraphs (b)(2) and (b)(3) areredundant and should be removed fromthe final rule.

FAA Response: The FAA hasincorporated the word ‘‘article,’’ asappropriate, in this section of the finalrule. The FAA has adopted paragraph(a)(1) as proposed with minor editorialchanges and the addition of the phrase‘‘within the limitations in its operationsspecifications.’’ As previously noted,this phrase was included in proposed§ 145.5(b). That proposed paragraph wasnot included in the final rule becauseproposed § 145.5(b) was similar toproposed § 145.215(a)(1), now§ 145.201(a)(1), in the final rule.However, because the above-citedphrase was not included in§ 145.215(a)(1), it has been included in§ 145.201(a)(1) in the final rule.

With regard to paragraph (a)(2), theFAA agrees that a contractor that iscertificated under part 145 will have itsown quality control system and does notneed to be surveyed by the contractingpart 145 certificated repair station.Therefore, the final rule provides that acontracting certificated repair stationmust provide in its contract that anoncertificated person performing amaintenance function must follow aquality control system equivalent to thecertificated repair station’s system. TheFAA notes that it is not enough for thecontracting repair station to give its



quality control manual to thenoncertificated contractor and assumethe proper procedures will be followed.The certificated repair station mustprovide adequate surveillance to ensureits quality control procedures arefollowed.

The FAA notes that paragraph (b) isincluded in the final rule to provide thata certificated repair station may notmaintain or alter any article for whichit is not rated and may not maintain oralter any article for which it is rated ifit requires special technical data,equipment, or facilities that are notavailable to it. This provision is acurrent requirement under § 145.53 andwas inadvertently omitted from theproposal.

The FAA has adopted paragraph (c) asproposed with minor revisions. Inaddition to re-designating the paragraphto reflect the addition of paragraph (b)as noted above, the word ‘‘applicable’’was included before ‘‘approvedtechnical data’’ to clarify that the datamust apply to the work performed.Paragraph (c)(3), which addresses majorrepairs and major alterations ofexperimental aircraft, includes areference to § 43.1(b). Section 43.1(b)provides that part 43 applies toexperimental aircraft that werepreviously issued a different kind ofairworthiness certificate. The referenceto § 43.1(b) in § 145.201(c)(3) clarifiesthat the paragraph applies to workperformed by a repair station on theseexperimental aircraft as covered by part43. The FAA agrees with thecommenters who expressed concernover the appropriateness of including aprovision in part 145 for major repairsor major alterations of all experimentalaircraft.

Finally, the FAA notes that workperformed away from a repair station isaddressed in § 145.203.

Section 145.203 (Proposed § 145.103(c))Work Performed at Another Location

Summary of Proposal/Issue: Theproposal would have addressed workperformed at another location in§ 145.103(c). The FAA proposed topermit a repair station to performcertain job functions on aircraft at aplace other than its fixed location dueto special circumstances as determinedby the Administrator. The FAAproposed to require that the repairstation manual include procedures forthe performance of this work.

Comments: Commenters stated thatthe proposal is too restrictive andcurrent § 145.51(d) should be retained.A commenter recommended permittingthe work to be performed on ‘‘articles’’rather than just ‘‘aircraft.’’ A

manufacturer stated that the proposallacks guidance on how type certificateholders can perform maintenance atlocations other than the manufacturer’slocation. The commenter stated thatprovisions are needed to define the roleof service technicians and engineerswho work for type certificate holdersand are trained to perform maintenancein the field according to FAA-approvedinstructions once the limited rating formanufacturers is eliminated. An aircraftmanufacturer noted that its customersoften request that scheduled inspectionsbe performed at their location. Anothercommenter stated that the rule shouldallow scheduled maintenance awayfrom the repair station’s location.Commenters stated that work away fromthe repair station’s fixed location shouldbe permitted ‘‘as applicable’’ rather than‘‘as approved by the Administrator.’’

FAA Response: Because this provisionapplies to repair station operations, theFAA determined that it should beincluded in subpart E of part 145. TheFAA has revised the final rule to permitwork on an ‘‘article’’ rather than an‘‘aircraft.’’

In response to comments, the FAAhas revised this section. This final rulepermits a repair station to perform workaway from the repair station’s locationwhen the work is necessary due to aone-time special circumstance, forexample, an aircraft on the ground or inpreparation for a ferry flight, asdetermined by the FAA. The rule alsopermits work away from a repairstation’s fixed location when it isnecessary to perform such work on arecurring basis, if the repair station’smanual includes procedures foraccomplishing maintenance, preventivemaintenance, alterations, or specializedservices at a place other than the repairstation’s fixed location. This laterprovision will allow work away from arepair station’s fixed location as part ofeveryday business practices rather thanunder special circumstances only, asproposed. In response to themanufacturer’s concerns, the FAA notesthat a manufacturer will need to obtaina part 145 certificate and performmaintenance under this section inaccordance with part 43 just as othercertificated repair stations are requiredto do.

Section 145.205 (Proposed § 145.7)Maintenance, Preventive Maintenance,and Alterations Performed forCertificate Holders Under Parts 121,125, and 135, and for Foreign AirCarriers or Foreign Persons Operating aU.S.-Registered Aircraft in CommonCarriage Under Part 129

Summary of Proposal/Issue: The FAAproposed to retain the currentrequirements for a repair stationperforming maintenance, preventivemaintenance, or alterations for a part121 operator having a continuousairworthiness maintenance program tocomply with the provisions of thoseparts pertaining to such a program. Theproposal would have specifically listedthose sections for which compliance isrequired. The FAA also proposed torevise the current rule by requiring acertificated repair station performingwork for an air carrier or commercialoperator having a continuousairworthiness maintenance programunder part 135 to comply with thesections of that chapter pertaining to theperformance of that work.

The proposal also would haveaddressed work performed for certificateholders operating aircraft under part 125and for persons operating aircraft underpart 129.

Finally, the FAA proposed toestablish provisions that would permit arepair station located at a line station foran air carrier certificated under part 121or part 135, or at a line station for aforeign air carrier or foreign personoperating a U.S.-registered aircraft incommon carriage, to perform, undercertain circumstances, line maintenanceon any aircraft of that air carrier orperson.

Comments: One association supportedthe concept contained in this sectionbut recommended the title be revised todelete the reference to requiredinspections. Some commentersrecommended that the FAA revise parts121 and 135 to require operators toprovide maintenance manuals or otherreference manuals to the repair stationperforming the maintenance.

Many commenters opposed thelanguage in proposed § 145.7(a). Severalindicated that the proposed languageimplies that a repair station would haveto completely adopt an air carrier’s totalrequirements rather than following onlythe air carrier’s requirements applicableto the work performed. A commenternoted that although a repair station isrequired to comply with an air carrier’scontinuous airworthiness maintenanceprogram, it does not necessarily use thesame methods or processes. Somecommenters were concerned about the



reference to § 121.375, Maintenance andpreventive maintenance trainingprograms, and the potential forcomplications to enforcement actionsand individual FAA inspectorinterpretations.

One commenter stated that the term‘‘manual’’ in § 145.7(b) should bereplaced with ‘‘maintenance program.’’Regarding § 145.7(d), a few commentersrecommended changing the language ‘‘aprogram approved by theAdministrator’’ to ‘‘the operator’sprogram approved by theAdministrator,’’ because the proposedlanguage implies that a program must beapproved for the repair station by theAdministrator.

Some commenters supported theproposed line maintenance provisionsin § 145.7(e). Several commentersopposed the proposal because it wouldpermit a repair station to do linemaintenance without meeting all part145 requirements. One commenterstated that the FAA must adopt aseparate performance requirement forline maintenance and clearly delineatethe function from the air carrierrequirements. Another commenterrecommended defining linemaintenance for aircraft other than largetransport category aircraft and includingthe line maintenance of part 91 aircraftlocated within the same geographicregion of the controlling FSDO.

FAA Response: The FAA movedproposed § 145.7 to subpart E because itis an operating rule. The FAA hasdeleted the reference to requiredinspections from the section title. TheFAA agrees that these inspections arepart of ‘‘maintenance’’ as defined in§ 1.1; therefore, the reference is notnecessary.

In response to commenters, the FAAhas revised the proposal. References tothe various sections in parts 121 and135 appeared to confuse commenters;the FAA did not intend to imposeadditional requirements by includingthose references. With regard tocommenters’ requests to require aircarriers to provide repair stations withcopies of their manuals, such revisionswere not proposed and, therefore, areoutside the scope of this rulemaking. Inaddition, the FAA notes that parts 121and 135 require that maintenance undera continuous airworthiness maintenanceprogram be performed in accordancewith the operator’s manual, and it is theoperator’s responsibility to ensure thework performed on its behalf is done soin accordance with its approvedprograms.

The FAA has revised therequirements in proposed § 145.7(d),now § 145.205(c), to require compliance

with the part 129 operators’ FAA-approved maintenance program inresponse to commenters’ concerns thatthe repair station had to obtain approvalfrom the FAA.

The final rule includes the provisionfor line maintenance as proposed exceptfor the requirement that the repairstation be located at the line station. TheFAA disagrees with commenters whoexpressed concern that repair stationsperforming line maintenance will not berequired to comply with part 145 and,therefore, the work will not beappropriately performed. The onlyrequirement that repair stations neednot comply with when performing linemaintenance is § 145.103(b). The repairstations must otherwise comply withpart 145 and meet the additionalrequirements in § 145.205(d). Aspreviously discussed, § 145.3 definesline maintenance. Finally, the FAAnotes that the proposal did not addressline maintenance performed for part 91operators and therefore that issue isoutside the scope of this rulemaking.

Section 145.207 (Proposed § 145.205)Repair Station Manual

Summary of Proposal/Issue: The FAAproposed to established a newrequirement for a repair station tomaintain and use a current, approvedrepair station manual that would setforth the procedures and policies for therepair station’s operation. It also wouldhave set forth requirements specifyingthe availability of the repair stationmanual to repair station personnel. TheFAA proposed that a repair stationprovide its CHDO with a current copyof the manual. If the CHDO’s copy wasan electronic version, it would have tobe accompanied by a means to accessthe manual at the CHDO.

Comments: Commenters opposedrequiring approval of a repair stationmanual and requested that the FAArevise the rule to require the manual beacceptable to the Administrator.Commenters noted that an approvalprocess may hamper their ability to beflexible in meeting customer needs.Commenters questioned whether theFAA has the resources for the approvalprocess. Some commenters asked howoften manual revisions must besubmitted to the CHDO. Othercommenters recommended revising therequirement that the manual besubmitted in paper or electronic format;some of those commenters suggestedusing language to allow submission inany media. Two unions stated that theFAA should require that the manual betranslated for use in foreign countries soall mechanics and employees can readand understand the manual. One of the

unions stated that the translation shouldbe approved by the FAA. Onecommenter asked whether having themanual available for personnel inelectronic format meets the ‘‘readilyavailable’’ requirement.

FAA Response: The FAA hasincluded in this final rule therequirement that a repair station manualmust be acceptable to the FAA. Unlikethe approval process, the FAA will notissue any formal approval of the manualor revisions to the manual. However, ifthe FAA determines that the manualitself or revisions of the manual are notacceptable, the FAA will notify therepair station and the repair stationmust make appropriate changes to themanual. The FAA notes that thefrequency with which a repair stationmust submit its manual revisions to theFAA is set forth in the proceduresrequired by § 145.209(j).

This final rule requires that a repairstation manual be accessible for use byrepair station personnel rather than‘‘readily available.’’ The FAA notes thatthe manual must be accessible topersonnel when the work is beingperformed; therefore, a manual in asupervisor’s office to which repairstation personnel do not have accesswhile work is being performed wouldnot comply with this final rule. Themanual may be in any format acceptableto the FAA, including but not limited topaper or electronic format.

With regard to the commentconcerning translation of the repairstation manual, the FAA notes that sucha requirement was not proposed andtherefore is outside the scope of thisrulemaking.

Section 145.209 (Proposed § 145.207)Repair Station Manual Contents

Summary of Proposal/Issue: In theproposal, the FAA outlined theminimum requirements for a repairstation manual. As proposed, themanual would have included anorganizational chart of managementpersonnel, a roster of inspectionpersonnel, a description of the facility’soperations, an explanation of its qualityassurance system, a description of itstraining program, procedures forperforming work at a location other thanthe facility, procedures for self-evaluations, a list of the maintenancefunctions contracted to an outsidecertificated facility or noncertificatedperson, procedures for conducting workunder proposed § 145.7, a description ofthe facility’s recordkeeping system, therepair station’s capability list,procedures for updating the capabilitylist, manual revision procedures, and



procedures for changes in location andfacilities of the repair station.

Comments: Commenters generallyopposed including names of individualsin the organizational chart or the rosterof authorized inspection personnel.Commenters stated that a managementor inspection personnel change wouldrequire a manual revision. Commentersalso stated that the organizational chartshould contain only functional titles.Commenters suggested that the rostershould be maintained separate from themanual.

Some commenters stated that onemanual should not include all theproposed items; for example, the qualitycontrol procedures could be in aseparate manual. A few commentersstated that the term ‘‘system’’ in‘‘quality control system’’ is too broadand subject to interpretation; one ofthose commenters noted that the FAAfailed to supply examples of a requiredquality control system.

Commenters also opposed requiring alist of facilities to which the certificatedrepair station contracts out maintenancefunctions. Similarly, commentersopposed including the capability list inthe manual. Commenters contended thatit is not necessary to include a generaldescription of the repair station’soperations, including housing, facilities,and equipment, because thisinformation already is provided to theFAA through certification requirements.Commenters also opposed including thetraining program in the manual.Commenters suggested including only ageneral description of the program.

Commenters opposed including theprocedures for self-evaluation foradding items to a capability list. Onecommenter stated that there is noprecedent for FAA approval of aninternal audit program.

Three commenters opposed therequirement to describe therecordkeeping system, because part 43already defines these requirements.Many commenters opposed theproposed requirement of includingprocedures for changes to a repairstation location or facilities.Commenters stated that procedures forchanging location or facilities is alreadyaddressed in the regulations and isunrelated to aviation safety.

FAA Response: The FAA has revisedthe proposal by deleting requirementsfor the names of specific personnel inthe organizational chart; only functionaltitles will be required. In addition,throughout this section, the FAA haseliminated, where appropriate,requirements to maintain the actualitems, such as rosters, capability lists,and names of outside contractors, and

instead requires that procedures forrevising this information be set forth inthe manual. As with personnel names,much of this information is subject tochange and if included in the manualwould require frequent manualrevisions.

As previously noted, the FAA hasremoved the quality assurancerequirements from the rule; therefore,any references to it have been removedfrom the manual requirements. TheFAA also has removed the qualitycontrol system requirements from themanual and has addressed themseparately in § 145.211. Requirementsrelating to the procedures for surveyingnoncertificated contractors also havebeen moved to § 145.211(c)(vi) and arediscussed later. The FAA has retainedthe requirement to include proceduresfor the self-evaluation required to addan article to a repair station’s capabilitylist. The FAA has determined that it isimportant to ensure that an article isadded to the list only when the articleis within the scope of the ratings andclasses of the repair station certificate.The repair station also must have all ofthe facilities, equipment, materials,technical data, processes, housing, andpersonnel to perform the work; adequateself-evaluation procedures are a meansto achieve this. However, the FAA notesthat § 145.215 now makes the use of acapability list optional for repairstations with limited ratings rather thanmandatory for all repair stations.Moreover, the FAA notes that themanual, and hence the procedures forself-evaluations, will not require FAAapproval but only FAA acceptance.

The FAA disagrees with commenterswho opposed including in the manual ageneral description of repair stationoperations and its recordkeepingrequirements. The FAA has determinedthat it is important for the repair stationto set forth how it operates. In addition,any changes to these operations will bereflected in the most current revision ofthe manual.

The FAA notes that procedures forrevising the training program requiredby § 145.163 must be included in themanual. However, because the FAA isdelaying implementation of the trainingprogram, these procedures need not beincluded in the manual until the repairstation is required to have a trainingprogram.

The FAA has not included in the finalrule the proposed requirement that themanual have procedures for changingthe repair station’s location andfacilities. Section 145.105 adequatelyaddresses this issue.

Unlike the proposal, the final ruledoes not require that a repair station

manual include a table of contents, listof effective pages, or list of revisionswith the date of each revision. Toaccommodate the technological changesthat permit repair stations to maintainand revise their manuals in differentformats and manners, the final ruleprovides that the manual must includea description of the system used toidentify and control sections of therepair station manual.

Section 145.211 (Parts of Proposed§§ 145.201, 145.207, and 145.209)Quality Control System

Summary of Proposal/Issue: Proposed§ 145.201 would have required a repairstation to establish a quality assurancesystem. The FAA also proposed tocontinue to require a repair station tohave a quality control and inspectionsystem but expanded the scope of thesystem to include the quality control ofany work performed by a contractor.The proposal also would have requiredthese systems to be described in therepair station manual. Proposed§ 145.209 would have modified currentprovisions related to the use ofinspection devices and the conduct ofinspection procedures. The FAA alsoproposed to require that a repair stationestablish specific procedures for theinspection of incoming raw materialsand articles, as well as inspectionprocedures for articles on whichcontract maintenance or alterationswere performed.

Comments: Commenters generallyopposed requiring repair stations toimplement a quality assurance system.Even commenters who supported theconcept of quality assurance stated thatthe FAA should issue appropriateguidance material on the subject andpermit public comment before adoptinga final rule. Some commenters cited thecost of external audits; othersquestioned the impact such a systemwould have on safety. One associationnoted that neither air carriers norproduction approval holders arerequired to have quality assuranceprograms, even though they may beauthorized to perform maintenance.Another association stated that part 145is a quality assurance system, and theFAA has not identified how it hasfailed. Unions generally supportedrequiring quality assurance systems.However, even some unions stated thatthe FAA should define specific andobjective standards for quality assurancesystems.

With regard to quality controlsystems, commenters stated that a repairstation should not be required to surveycertificated contractors or ensure theyfollow quality control procedures. Many



of those commenters argued that if thecontractor is certificated, it will have aquality control system, and it is theFAA’s responsibility to survey theserepair stations.

Commenters opposed the proposedrequirements that repair stations havean incoming inspection of raw materialsand articles to ensure conformity withtype design data. Those commentersalso opposed an inspection of articleson which contract maintenance hasbeen performed to ensure conformitywith type design data and that thearticle is in condition for safe operation.Some commenters noted that a repairstation inspection can ensure only thatthe article is in an airworthy conditionand that the work was performed in amanner as prescribed in part 43.

With regard to hidden damage, somecommenters stated that an inspectorcannot disassemble every part orcomponent to search for such damage.Commenters stated that the rule shouldrequire owners/operators to notify therepair station that an article may havebeen involved in an accident. Anothercommenter stated that limitinginspections for hidden damage toaccident-related parts is inadequate forensuring safety.

Commenters recommended thatinspection personnel requirements bemoved to proposed § 145.153. Inaddition, some commenters stated thatinspection personnel should be requiredto be familiar with only ‘‘applicable’’methods, techniques, and equipmentrather than ‘‘all’’ of those items.

FAA Response: As previously noted,the FAA has not included the proposedrequirement for establishing a qualityassurance system. The FAA intends toissue a subsequent rulemaking that willaddress this issue. Comments on NoticeNo. 99–09 will be considered duringthat rulemaking process.

The FAA has retained the qualitycontrol system requirements andcombined the applicable provisions ofproposed §§ 145.201, 145.207, and145.209 in § 145.211 of this final rule.

Section 145.211 requires a repairstation to maintain a quality controlsystem acceptable to the FAA thatensures the airworthiness of articles onwhich the repair station or any of itscontractors perform maintenance. Thisfinal rule requires the repair station tokeep a quality control manual anddelineates the items that must beincluded in that manual. The requireditems were set forth in various sectionsof the proposal but primarily in theproposed repair station manualrequirements; some of the items also arerequired to be maintained in the repairstation inspection procedures manual

under current § 145.45(f). The FAAdetermined that it was more appropriateto consolidate all of the provisionsrelating to quality control into onesection. The FAA notes that the qualitycontrol manual may be separate fromthe repair station manual or includedwith that manual as a separate sectionor volume.

In this final rule, repair stations thatcontract maintenance functions to othercertificated repair stations will not berequired to survey those contractors.The rule requires a certificated repairstation to qualify and survey onlynoncertificated persons who performmaintenance functions for the repairstation.

The final rule also requires a repairstation to inspect incoming rawmaterials to ensure acceptable qualityand to perform a preliminary inspectionof articles that are maintained. The finalrule contains the requirement that arepair station have procedures forinspecting for hidden damage to articlesinvolved in accidents.

The FAA agrees that the inspectionpersonnel requirements of the proposalshould be moved to subpart D, whichaddresses personnel requirements. Aspreviously noted, § 145.155 requiresthat inspectors be familiar with theapplicable regulations and theinspection methods, techniques,practices, aids, equipment, and toolsused to determine the airworthiness ofthe article on which the maintenance,preventive maintenance, or alterationsare performed. Inspectors also must beproficient in using the various types ofinspection equipment and visualinspection aids appropriate for thearticle being inspected.

Section 145.213 (Proposed § 145.211)Inspection of Maintenance, PreventiveMaintenance, or Alterations

Summary of Proposal/Issue: The FAAbased this proposed section on therequirements regarding inspection ofmaintenance, preventive maintenance,or alteration in current § 145.59 andexpanded it to address repair stationslocated outside the United States. TheFAA proposed to include currentrestrictions placed on repair stationslocated outside the United States and onthe supervisory and inspectionpersonnel employed by these repairstations.

Comments: Commenters generallysupported the language in proposed§ 145.211(a) but indicated that thephrase ‘‘aircraft, airframe, aircraftengine, propeller, appliance, andcomponent, or part thereof’’ should bereplaced with the word ‘‘article.’’ Inaddition, many commenters indicated

that the inspector is responsible fordetermining the airworthiness only ofthe article on which work wasperformed rather than the entire aircraftand suggested adding the phrase ‘‘withrespect to the work performed’’ toparagraph (b)(2). Other commenterssuggested replacing the word ‘‘work’’ inparagraphs (b)(1) and (b)(2) with thephrase ‘‘maintenance, preventivemaintenance, and alteration.’’ Manycommenters indicated the language ofproposed § 145.211(c) should beremoved because it repeats proposed§ 145.153 and is in conflict with theFAA’s intention of removing thedistinction between domestic repairstations and foreign repair stations.Commenters also indicated thatproposed § 145.211(d) should berewritten to specify that only personsdesignated by a repair station may signoff on final inspections andmaintenance releases for the repairstation because designated personscurrently sign final inspections andmaintenance releases under the repairstation’s certificate, not their personalcertificates.

FAA Response: Except as discussedbelow, the rule is adopted as proposed.As suggested by a commenter, the FAAhas revised the rule to use the word‘‘article’’ when appropriate. In responseto commenters’’ concerns, the FAA hasincluded language in paragraph (b)(2) toclarify that an inspector must inspectthe article on which the repair stationhas performed work to determine thearticle to be airworthy ‘‘with respect tothe work performed.’’ In addition, theFAA has moved the inspectionpersonnel requirements to § 145.155.The FAA agrees that all personnelrequirements should be located insubpart D.

Section 145.215 (Proposed § 145.203)Capability List

Summary of Proposal/Issue: Theproposal would have required eachrepair station to prepare and retain acurrent capability list that contains a listof the articles on which it performsmaintenance, preventive maintenance,or alterations. The proposal would haverequired that these articles be identifiedby make and model, part number, orother nomenclature designated by thearticle’s manufacturer. The FAAproposed to require that before revisingits capability list, a repair station mustcomplete a self-evaluation to ensure itmeets all of the requirements for theproposed operations.

Comments: Many commentersopposed the concept of a capability list.The commenters generally stated thatcreating and maintaining a capability



list would create a significantadministrative burden and increaseoperating costs without enhancingsafety. Commenters noted that thecapability list is redundant in light ofthe other requirements in part 145.Some commenters noted that acapability list has merit, but stated thatlisting each article by make, model, andpart number is excessive. Some of thosecommenters added that the part numbershould be the basic part number and notinclude ‘‘dash numbers.’’ Somecommenters noted that the self-evaluation system is not defined. Thecommenters indicated that proposed§ 145.203(d) should be revised to permitthe use of a designee when theaccountable manager is unavailable.Some commenters believed paragraph(d) places an unacceptable level ofpersonal liability on the accountablemanager and should be deleted. Oneassociation stated that a repair stationshould have to submit only changes toits capability list, not the entire list, andchanges should be allowed to besubmitted electronically to the FAA.

FAA Response: The FAA has revisedthe proposed requirements to providerepair stations with only limited ratingsthe option of using a capability list. Ifthe repair station chooses not to use acapability list, it must performmaintenance, preventive maintenance,or alterations of articles only as listed inits operations specifications. The FAAdetermined that it would beburdensome for all repair stations tomaintain a capability list as proposed.In addition, the FAA finds that repairstations with limited ratings would bemore likely to exercise this option.Based on the comments, the FAArecognizes that the use of a capabilitylist is not appropriate for every repairstation. The FAA also notes that it neverintended to require, for example, repairstations that perform C and D checks onmany different airplanes to compile acapability list with every part of everyairplane it works on.

For repair stations with limitedratings, the use of a capability list willbe less onerous than frequentlyrequesting revisions to their operationsspecifications and provide regulatoryflexibility. The FAA has not included inthe final rule the requirement to identifyeach article by part number. The finalrule requires identification by make andmodel or other nomenclature designatedby the article’s manufacturer. If a repairstation with a limited rating chooses touse a capability list, its operationsspecifications will not need to berevised each time a new article is addedto the list. However, the final ruleretains the requirement that a repair

station perform a self-evaluation beforeadding an article to its capability list.The FAA has determined that such anevaluation is necessary to ensure therepair station has the facilities,equipment, materials, technical data,processes, housing, and trainedpersonnel in place to perform work onthat article. The FAA notes that§ 145.209 requires a repair station toinclude in its repair station manualprocedures for performing this self-evaluation and reporting the results tothe appropriate manager for review andaction. The FAA has removed therequirement that the accountablemanager must sign the evaluation.However, documentation of theevaluation must be retained on file bythe repair station. If the repair stationchooses to use a capability list, itsmanual also must include proceduresfor revising the capability list andreporting the revisions to the CHDO,including the frequency with which itsrevisions will be reported. Finally, theFAA notes that the capability list mustbe maintained in a format acceptable tothe FAA; as previously discussed, theuse of this language will permit repairstations to maintain the listelectronically.

Section 145.217 (Proposed § 145.213)Contract Maintenance

Summary of Proposal/Issue: The FAAproposed to address requirements forrepair stations that contract outmaintenance functions. The FAAproposed that a repair station could notcontract a job function to anothercertificated repair station or anoncertificated person unless thecontracting repair station met thequality control system requirementsproposed in §§ 145.201(a)(2) and145.209(c)(2). The contracting repairstation manual must also contain theprocedures specified in proposed§ 145.207(h), including procedures forsurveying that certificated repair stationor noncertificated entity. The proposalalso would have provided that acertificated repair station may notcontract the maintenance, preventivemaintenance, or alteration of a completetype-certificated product, and it may notprovide only approval for return toservice of any article following contractmaintenance.

Comments: Many commentersopposed the requirement that acertificated repair station must auditanother certificated repair station thatperforms contract work. Commentersasserted that the FAA already has madea determination that a certificated repairstation’s quality control and inspectionsystem is adequate when the repair

station is issued a repair stationcertificate. Commenters added thatmandatory audits should be required fornoncertificated subcontractors only.

Several commenters opposed some ofthe requirements regarding job functionscontracted to a noncertificated person.Some commenters requested that theterm ‘‘job function’’ be changed to‘‘maintenance/job function.’’ Onecommenter noted that the FAA’s use ofthe terms ‘‘certificated repair station,’’‘‘contracting repair station,’’ and‘‘noncertificated person’’ is not clear.Furthermore, several commenters notedthat the FAA needs to clarify thesupervisory role of the repair station.

Many commenters contended that theprohibition against contracting out themaintenance of a complete type-certificated product is unrealistic andwould not allow engines to beoverhauled or nondestructive testing tobe performed. Commenters added thatthis requirement prohibits a certificatedrepair station from sending a type-certificated product to the originalequipment manufacturer for warranty orfactory work. In addition, a foreignauthority noted that this requirementmay be too restrictive andrecommended revising it to make itsimilar to the requirement in JAR 145.Other commenters noted that thisprohibition would be costly to and limitthe business flexibility of certificatedrepair stations.

FAA Response: The FAA agrees thatit is not necessary for a certificatedrepair station to survey anothercertificated repair station who performsa maintenance function under contract.This final rule does not include thatprovision. This final rule retains therequirement that a certificated repairstation must ensure that anoncertificated person who performs amaintenance function under contractfollows a quality control systemequivalent to the system followed by thecertificated repair station. Thecertificated repair station also mustremain directly in charge of the workand verify, by test or inspection, that thework was performed satisfactorily andthat the article is airworthy beforeapproving the article for return toservice. The FAA notes that ‘‘directly incharge’’ is defined in § 145.3. The FAAalso notes that with regard to theinspection requirement, a repair stationis always responsible under § 145.213for ensuring that an article is inspectedand that a determination is made thatthe article is airworthy.

In addition to the revisions discussedabove, the FAA has revised ‘‘jobfunction’’ to read ‘‘maintenancefunction.’’ This section also contains



requirements for information previouslyproposed for inclusion in the repairstation manual, such as the maintenancefunctions contracted to each outsidefacility and the name of the facility andthe type of certificate and ratings, if any,held by each facility. With respect tocontract maintenance, this final rulerequires that a repair station manualmust contain only the procedures formaintaining and revising thisinformation. The FAA determined thatbecause this information may be subjectto frequent revision, it need not beincluded in the repair station manual. Inaddition, the final rule provides that theFAA must approve the maintenancefunction to be contracted to an outsidesource. The FAA notes that under theproposal, this information would havebeen included in the repair stationmanual, which was an approvedmanual.

With regard to the prohibition againstcontracting out the maintenance,preventive maintenance, or alteration ofa complete type-certificated product, theFAA has clarified these provisions inresponse to commenters’ concerns. Therule now provides that a certificatedrepair station may not provide only theapproval for return to service of acomplete type-certificated productfollowing contract maintenance,preventive maintenance, or alterations.As noted in the proposal, thisprohibition is intended to preclude‘‘paper only’’ repair stations.

Section 145.219 (Proposed § 145.217)Recordkeeping

Summary of Proposal/Issue: The FAAbased this proposed section on current§§ 145.61 and 145.79. The proposalwould have modified the current rule byrequiring all repair stations to retaindetailed records showing the make,model, identification number, and serialnumber (when applicable) of the articleon which work was performed. Thecurrent 2-year record retentionrequirement was retained; however, theFAA proposed that the period fromwhich this time would be measuredwould commence on the date on whichthe article was approved for return toservice, instead of the date on which thework was performed. The proposal alsowould have required that these recordsinclude a copy of the maintenancerelease and that the repair stationprovide a copy of an article’smaintenance release, retrievable inEnglish, to the owner or operator.

In addition, the proposal required thata repair station make available to theAdministrator or any authorizedrepresentative of the NTSB allmaintenance records required to be kept

by proposed § 145.217. The proposedparagraph specified that the records beprovided in English.

Finally, the proposal specified thoserecordkeeping requirements that applyto repair stations located outside theUnited States.

Comments: Commenters generallyopposed the distinction made betweenrepair stations located inside the UnitedStates and those located outside theUnited States, and contended that allsimilar repair stations should haveidentical recordkeeping requirements.Some commenters objected to the use ofsubjective terms, such as ‘‘adequate’’records, and stated that the FAA shouldestablish an objective minimumstandard. A few commenters suggestedreplacing the word ‘‘owner’’ inproposed paragraph (b) with ‘‘customer’’or expanding the paragraph to requirethe repair station to give a copy of thework order to the owner’s or operator’sagent.

FAA Response: The FAA has revisedthis section to simplify recordkeepingrequirements. This final rule requires acertificated repair station to maintain inEnglish those records that demonstratecompliance with the requirements ofpart 43. The rule no longer lists anyspecific records that must bemaintained. The rule retains the 2-yearretention requirement and therequirement to provide a copy of themaintenance release to the owner oroperator of the article. The FAA doesnot find it necessary to include languagein the rule to permit a repair station togive a copy of the maintenance releaseto the owner or operator’s agent.However, the rule does not preclude anowner or operator from making sucharrangements between the repair stationand the owner or operator of the aircraft.The rule also retains with minoreditorial changes the requirement thatthe records be available for inspectionby the FAA and the NTSB.

The rule does not contain separaterecordkeeping requirements for repairstations located inside the United Statesversus those located outside the UnitedStates. With regard to records requiredto be maintained by certificated repairstations located outside the UnitedStates, the FAA notes that therecordkeeping requirements do notapply to foreign-registered aircraftoperated by foreign operators.

Section 145.221 (Proposed § 145.219)Reports of Failures, Malfunctions, orDefects

Summary of Proposal/Issue: Undercurrent § 145.63 or § 145.79, repairstations are required to submit reports ofdefects or unairworthy conditions to the

FAA. The FAA proposed to standardizethe type of data reported under theservice difficulty reporting system byspecifically listing the informationrequired when a repair station submitsa report.

Current § 145.63(b) states that in caseswhere filing a report of defects orunairworthy conditions might prejudicethe repair station, the repair stationshall refer the matter to theAdministrator for a determination as towhether a report is necessary. Becausesuch a condition does not appear inother parts of the regulations requiringsuch reports, the FAA proposed toeliminate this condition.

Comments: One commenter statedthat the proposal constitutes an invasionof privacy. One association stated thatthe FAA should consider the final rulerecently published on service difficultyreports when adopting the final rulelanguage for this requirement. Thatassociation also requested that the FAAdefine ‘‘serious defect’’ and ‘‘recurringunairworthy condition.’’ Theassociation stated the FAA should makeclear that ‘‘recurring unairworthyconditions’’ are those that are notcontemplated or covered by dataapproved by or acceptable to theAdministrator. Commentersrecommended revising the time forreporting from 72 hours to 96 hours andusing ‘‘article’’ where appropriate.Commenters opposed including thename and address of the operator in thereport, because the report alreadyincludes the registration number, whichcan be used for obtaining the otherinformation. Other commenters statedthat the rule should be revised to ensureonly one report is submitted for eachservice difficulty. One commenter statedthat the rule should be expanded toinclude all part 145 certificated repairstations.

FAA Response: The FAA has revisedthis section to reflect recent revisionsadopted in Amendment Nos. 121–279,125–35, 135–77, and 145–22, ‘‘ServiceDifficulty Reports’’ (65 FR 56192,September 15, 2000), including revisingany ‘‘serious defects’’ or ‘‘otherunairworthy condition’’ to read ‘‘failure,malfunction, or defect,’’ and increasingthe time period for reporting from 72hours to 96 hours. The FAA alsoclarified the reporting requirementsproposed in paragraph (b) to requireonly the registration number of theaircraft rather than the name andaddress of the operator and to require‘‘time since last overhaul,’’ if applicable.



Section 145.223 (Proposed § 145.221)FAA Inspections

Summary of Proposal/Issue: The FAAbased this proposed section on current§ 145.23 and expanded it so the FAAwould be able to inspect repair stations’contract maintenance providers. TheFAA proposed to require thatarrangements for contractors’ servicesinclude provisions for inspection of thecontractor by the FAA.

Comments: Many commentersopposed proposed § 145.221. Severalcommenters indicated that the languageregarding inspecting any contractor isbeyond the scope of aviation safety andshould be removed. Commenters notedthat the FAA already has the right toinspect certificated repair stations;however, the surveillance ofnoncertificated facilities should be theresponsibility of the certificated repairstation. Commenters stated that the FAAhas no authority over noncertificatedfacilities that usually are non-aviationsuppliers, and the agency has presentedno safety reason or justification forinspecting them. Furthermore, severalcommenters added that this could havea negative economic impact oncertificated repair stations. Othercommenters noted that the surveillanceof noncertificated facilities should belimited to the functions performed forthe certificated repair station and areperformed only when there is cause andproper notification. In addition, severalcommenters suggested that the ruleshould continue to require writtennotification by the FAA of anyinspection findings.

FAA Response: The FAA has revisedthe proposed requirement to providethat a certificated repair station may notcontract for the performance of amaintenance function on an article witha noncertificated person unless itprovides in its contract with thenoncertificated person that the FAAmay make an inspection and observe theperformance of the noncertificatedperson’s work on the article. Thisrequirement no longer applies tocertificated repair stations that areperforming a maintenance function foranother certificated repair stationbecause the FAA already has the rightto inspect the contract facility.

The final rule also provides that acertificated repair station may not returnto service any article on which amaintenance function was performed bya noncertificated person if thenoncertificated person does not permitthe FAA to make the inspectiondescribed in the paragraph above.

With regard to the commenters whoopposed the FAA’s decision to remove

the current provision that provides thata repair station will be notified inwriting of any defects found during aninspection, the FAA notes that this iscommon FAA practice and need not bespecified in regulatory language.

Part 91—General Operating and FlightRules

Section 91.411 Altimeter System andAltitude Reporting Equipment Tests andInspections

Summary of Proposal/Issue: Theproposal would have revised § 91.411 toreflect the proposed ratings and classes.In addition, the FAA proposed toeliminate the provision relating to thelimited rating for manufacturers.

Comments: A foreign air carrieropposed the proposed specializedservice rating.

FAA Response: As previously noted,the FAA is not adopting the proposedratings and classes. However, the finalrule amends § 91.411 by removingparagraph (b)(2)(v), which referred tothe limited rating for manufacturers.

Section 91.413 ATC TransponderTests and Inspections

Summary of Proposal/Issue: Theproposal would have revised § 91.413 toreflect the proposed ratings and classes.In addition, the FAA proposed toeliminate the provision relating to thelimited rating for manufacturers.

Comments: A foreign air carrieropposed the proposed specializedservice rating.

FAA Response: As previously noted,the FAA is not adopting the proposedratings and classes. However, the finalrule amends § 91.413 by removingparagraph (c)(1)(iv), which referred tothe limited rating for manufacturers.

Appendix A to Part 91 Category IIOperations: Manual, Instruments,Equipment, and Maintenance

Summary of Proposal/Issue: Theproposal would have revised appendixA to part 91 to reflect the proposedratings and classes. In addition, the FAAproposed to eliminate the provisionrelating to the limited rating formanufacturers.


FAA Response: As previously noted,the FAA is not adopting the proposedratings and classes. However, the finalrule amends appendix A to part 91 byremoving paragraph 4(b)(1)(iii), whichreferred to the limited rating formanufacturers.

Part 121—Operating Requirements:Domestic, Flag, and SupplementalOperations

Special Federal Aviation Regulation No.36

Summary of Proposal/Issue: Theproposal would have revised paragraph2(c) of this regulation by replacing thereference to current § 145.51 with areference to proposed § 145.215(b)(2).The FAA also proposed to replace thereferences to ‘‘domestic repair stationcertificate under 14 CFR part 145’’ with‘‘repair station certificate under 14 CFRpart 145 that is located in the UnitedStates.’’


FAA Response: The final rule isadopted as proposed except that thereference to proposed § 145.215(b)(2) isrevised to § 145.201(c)(2) to correspondto the sections as they appear in thisfinal rule.

Section 121.378 CertificateRequirements

Summary of Proposal/Issue: The FAAproposed to revise this section byreplacing ‘‘repair stations certificatedunder the provisions of subpart C of part145’’ in paragraph (a) with ‘‘acertificated repair station that is locatedoutside the United States’’ and bychanging the word ‘‘alteration’’ to‘‘alterations.’’


FAA Response: This section isadopted as proposed.

Section 121.709 Airworthiness Releaseor Aircraft Log Entry

Summary of Proposal/Issue: The FAAproposed to revise this section byreplacing ‘‘a repair station certificatedunder the provisions of subpart C of part145’’ in the concluding text of paragraph(b) with ‘‘a certificated repair stationthat is located outside the UnitedStates,’’ and by designating that text asparagraph (c). The FAA also proposed toredesignate paragraphs (c) and (d) asparagraphs (d) and (e), respectively.



Part 135—Operating Requirements:Commuter and On Demand Operationsand Rules Governing Persons on BoardSuch Aircraft

Section 135.435 CertificateRequirements

Summary of Proposal/Issue: The FAAproposed to revise this section byreplacing ‘‘repair stations certificated



under the provisions of subpart C of part145’’ in paragraph (a) with ‘‘acertificated repair station that is locatedoutside the United States.’’



Section 135.443 Airworthiness Releaseor Aircraft Maintenance Log Entry

Summary of Proposal/Issue: The FAAproposed to revise this section byreplacing ‘‘a repair station certificatedunder the provisions of subpart C of part145’’ in the concluding text of paragraph(b) with ‘‘a certificated repair stationthat is located outside the UnitedStates,’’ and by designating that text asparagraph (c). The FAA also proposed tore-designate paragraph (c) as paragraph(d).



Paperwork Reduction Act

This final rule contains informationcollections that are subject to review byOMB under the Paperwork ReductionAct of 1995 (Pub. L. 104–13). Therequest for review and approval has

been submitted to OMB. An opportunityfor comment on the paperwork portionof this rule was not provided during theNPRM stage. Therefore, there is a 60-daycomment period attached to this finalrule. The title, description, respondents,and description of the burden are shownbelow.

Title: Part 145 Review: RepairStations.

Description: Under currentregulations, certificate holders operatingunder part 145 certificated repairstations are required maintain aninspection procedures manual andcomply with recordkeepingrequirements. The objective of theamendment to part 145 is to update andrevise the regulations for repair stations.The rule reorganizes the requirementsapplicable to repair stations to reduceduplication of regulatory language andeliminate obsolete information.

The submittal and collection ofinformation required by this part isnecessary for (1) issuance of, renewal of,or amendment to repair stationcertificates and operationsspecifications, and (2) ensuring thateach certificated repair station meetsminimum acceptable standards.

Description of Respondents: This rulewill constitute several new paperwork

burdens for repair station certificateholders. The FAA notes that the currentinformation collection andrecordkeeping requirements wereapproved under OMB assigned ControlNumbers 2121–0003, 2120–0010, and2120–0571.

Description of Burden: The FAAexpects that this rule will affectapproximately 5,000 existing repairstations certificated under part 145 andmanufacturer’s maintenance facilities.The estimated total reporting andrecordkeeping burden is 1,801,700hours and the estimated annual cost tothe respondent is $27,025,500.

The annual cost is determined byestimating the respondent’s timerequired to complete and submit newapplications, as well as applying forrenewal or amendment to existingcertificates. The estimate also includesthe average time required to prepare therepair station manual, quality controlmanual, capability lists, subcontractorslisting and training programs.Additionally, it includes the estimatedtime for respondents to prepare lettersof recommendation for repairman, andto maintain records of supervisory andinspection personnel, and to prepareperformance records and reports.

Section Description Occurrences Hours Total cost

§ 145.51 ........................................................... Application ...................................................... 500 150 $2,250§ 145.51(a)(1) .................................................. Repair station Manual .................................... 5,000 400,000 6,000,000§ 145.51(a)(2) .................................................. Quality Control Manual .................................. 5,000 200,000 3,000,000§ 145.51(a)(3) .................................................. List of Articles ................................................. 5,000 40,000 600,000§ 145.51(a)(4) .................................................. Organization Chart ......................................... 5,000 20,000 300,000§ 145.51(a)(5) .................................................. Description of Facilities .................................. 5,000 20,000 600,000§ 145.51(a)(6) .................................................. List of Functions ............................................. 5,000 40,000 600,000§ 145.105 ......................................................... Changes to Locations .................................... 600 1,200 18,000§ 145.107 ......................................................... Satellite Repair Stations ................................. 600 150 2,225§ 145.157 ......................................................... Return to Service Personnel .......................... 600 1,200 18,000§ 145.161 ......................................................... Records of Management ................................ 5,000 20,000 300,000§ 145.163 ......................................................... Training Requirements ................................... 5,000 200,000 3,000,000§ 145.213 ......................................................... Maintenance Records .................................... 12,000 48,000 720,000§ 145.215 ......................................................... Capability List ................................................. 3,000 36,000 540,000§ 145.219 ......................................................... Recordkeeping ............................................... 3,000,000 750,000 11,250,000§ 145.221 ......................................................... Reports of Defects ......................................... 2,500 25,000 375,000

Total Burden to Respondents .................. ......................................................................... ........................ 1,801,700 27,025,500

When an OMB control number isassigned, notification of that numberwill be published in the FederalRegister.

International Compatibility

In keeping with U.S. obligationsunder the Convention on InternationalCivil Aviation, it is FAA policy tocomply with International CivilAviation Organization (ICAO) Standardsand Recommended Practices to themaximum extent practicable. The FAAhas reviewed the corresponding ICAO

Standards and Recommended Practicesand has identified several differences.

ICAO standards (§ 4.2.1.2 (e)) addresshuman performance and limitations foraircraft maintenance license holders.Neither part 145 nor part 65 addresshuman performance and limitations.

ICAO standards (§ 4.2.1.3) have a two-tier approach to mechanic certification.ICAO requires 4 years of experience, or2 years with the completion of anapproved training course. ICAO alsoallows mechanics to be certificated withrestrictions—limiting their work to

certain aircraft or aircraft systems—listed on their licenses. Part 145requires a minimum of 18 months ofexperience in order to be authorized toreturn articles back to service and toobtain certification as a repairman. Thefinal rule mirrors part 65 requirementsfor certification as a mechanic orrepairman that requires 18 months ofexperience and requires initial andrecurrent training for all personnelassigned to perform maintenance,preventative maintenance, alterations,or inspections.



ICAO standards (§ 4.2.2.2) require theprivileges of an aircraft maintenancelicense holder to be annotated on theirlicense. ICAO requires the aircraft,powerplant, or aircraft system, orcomponent make/model be entered onthe license. Neither part 145 nor part 65requires aircraft type, make, model, oraircraft system to be annotated on amechanic’s certificate.

ICAO (§ 8.7.3.2) requires maintenanceorganizations to establish anindependent quality assurance system(QA system) to monitor compliancewith and adequacy of the procedures orby providing an inspection system toensure all maintenance is properlyperformed. Part 145 does not includeprovisions for a QA system based onadverse public comments and the lackof FAA guidance for these systems.Although the final rule does notexplicitly require a QA system, the ruledoes include portions of a typical QAsystem, such as, the self-evaluation(audit) required prior to using capabilitylists, the addition of a quality controlmanual, and the inclusion of amaintenance personnel trainingprogram.

ICAO (§ 8.7.7.2) requires certaininformation that constitutes themaintenance release: basic details of themaintenance performed, the date of themaintenance, the identity of theapproved maintenance organization,and the identity of the person(s) signingthe release. The final rule includes asection for personnel authorized toapprove articles for return to service,but does not require all of theinformation the ICAO standards do.This information usually is required bythe repair station’s inspection systemand is detailed in the repair stationmanual.

Regulatory Evaluation SummaryChanges to Federal Regulations must

undergo several economic analyses.First, Executive Order 12866 directs thateach Federal agency shall propose oradopt a regulation only upon a reasoneddetermination that the benefits of theintended regulation justify its costs.Second, the Regulatory Flexibility Actrequires agencies to analyze theeconomic effect of regulatory changeson small businesses and other smallentities. Third, the Office ofManagement and Budget directsagencies to assess the effect ofregulatory changes on internationaltrade. In conducting these analyses, theFAA has determined that this proposedrule: (1) Will generate benefits thatjustify its costs and is not a ‘‘significantregulatory action’’ as defined in theExecutive Order; (2) is not significant as

defined in the Department ofTransportation’s Regulatory Policies andProcedures; (3) will not have asignificant impact on a substantialnumber of small entities; (4) will notconstitute a barrier to internationaltrade; and (5) will not contain anyFederal intergovernmental or privatesector mandate. These analyses aresummarized here in the preamble, andthe full Regulatory Evaluation is in thedocket.

The Federal Aviation Administration(FAA) is updating and revising theregulations for part 145 repair stations.The final rule is necessary becausemany of the current repair stationregulations do not reflect changes inrepair station business practices,advancements in technology, andaircraft maintenance practices. Thebenefits and costs have been calculatedfor 13 years.

The estimated quantifiable safetybenefits, being difficult to quantify, arecalculated based on what the reductionin accidents needs to be in order toequate the discount costs to thediscounted safety benefits. If the safetybenefits are half of those discussed inthe initial regulatory evaluation (6.9total accidents will be avoided,preventing 2.2 fatalities, 1.7 seriousinjuries, and 2.7 minor injuries), thenthe quantifiable safety benefits of thefinal amendment will be approximately,$28.5 million in current dollarsdiscounted at 7 percent, over 13 years.On an annual basis (assuming thatquantifiable benefits are only one-half ofthose estimated in the initial regulatoryevaluation) an average of 3.4 totalaccidents will be avoided, preventing1.1 fatalities, 0.8 serious injuries, and1.4 minor injuries. The avoidance of 3.4accidents will avert at a minimum thedestruction of at least 2.4 generalaviation aircraft and will avert thesubstantial damage of 0.7 generalaviation aircraft. Property damage toother types of aircraft will also beaverted.

The estimated net cost of complianceafter subtracting cost savings with thefinal amendment will be $22.2 million(net of cost savings) in current dollars,discounted at 7 percent, over 13 years.The most costly requirement, section145.161, Training Requirements, willresult in repair stations incurringdiscounted costs of $30.5 million. Themost cost-saving requirement, theManufacturer’s Service Manual, willresult in repair stations saving between$22.8 and $45.5 million discounted.

The final rule is not expected to havea significant impact on internationaltrade nor is it expected to have a

significant impact on a substantialnumber of small firms.

Regulatory Flexibility DeterminationThe Regulatory Flexibility Act of 1980

(RFA) establishes ‘‘as a principle ofregulatory issuance that agencies shallendeavor, consistent with the objectiveof the rule and of applicable statutes, tofit regulatory and informationalrequirements to the scale of thebusiness, organizations, andgovernmental jurisdictions subject toregulation.’’ To achieve that principle,the Act requires agencies to solicit andconsider flexible regulatory proposalsand to explain the rationale for theiractions. The Act covers a wide-range ofsmall entities, including smallbusinesses, not-for-profit organizationsand small governmental jurisdictions.

Agencies must perform a review todetermine whether a proposed or finalrule will have a significant economicimpact on a substantial number of smallentities. If the determination is that itwill, the agency must prepare aregulatory flexibility analysis asdescribed in the Act.

However, if an agency determines thata proposed or final rule is not expectedto have a significant economic impacton a substantial number of smallentities, section 605 (b) of the 1980 actprovides that the head of the agencymay so certify and a RFA is notrequired. The certification must includea statement providing the factual basisfor this determination, and thereasoning should be clear.

In many cases, the Small BusinessAdministration suggests that ‘‘small’’represents the impacted entities with anannual revenue of $5 million or less. Forthis final rule, a small entity group isdefined as aircraft servicing andrepairing, except on a factory basis(Standard Industrial Classification Code4581). At present, it is difficult for theFAA to determine exactly how many ofthese repair stations have an annualrevenue of $5 million or less butbelieves that the number is probablylarge. The FAA found a minimum of 19repair stations in the World AviationDirectory that meet this definition.

For each of these entities the FAAattempted to find the annual sales fromWorld Aviation Directory 1998, the NetPresent Value of Costs, and annualizedcosts. After calculating the annualizedcosts accounting for firm size using thesame assumptions that were used in thecost section, the FAA then comparedthe annualized costs with annual sales.

As stated earlier, a minimum of 19repair stations meet this standard. Forthe smallest entity listed in table C1,one company with three employees had



sales of $500,000 and another companywith 9 employees had sales of $300,000.The annualized cost of the final rule isvery small in comparison to annualsales of the affected entities—considerably less than 1 percent of theirsales. At most, the final rule will imposean annualized cost on one small entitythat is approximately 0.1 percent of itsannual sales. Therefore, the FAA doesnot consider the costs imposed by thisfinal rule to have a significant impact ona substantial number of small entities.

Furthermore, the FAA has rewrittenseveral provisions that provideregulatory flexibility, especially forsmall entities. Two of these provisionsrelate to capability lists and repairstation manuals. In addition, one set ofprovisions on quality assurance hasbeen deleted from the final rule becauseof the disproportionate impact on smallentities. The following discussionaddresses each of these three subjects.

Capability ListThe final rule allows for use of a

capability list. The use of this listprovides regulatory flexibility because itprovides repair stations with a limitedrating the option not having to alwayschange its operations specificationsunder the existing rule—a repair stationthat performs maintenance, preventivemaintenance or alterations on articlesmust do so in accordance with itsoperations specifications. Under thefinal rule, a repair station with a limitedrating may use a capability list, and willno longer have to revise its operationsspecifications each time a new article isadded to the list (however, the final ruleretains the requirement that a repairstation perform a self-evaluation beforeadding an article to its capability list).

For example, existing § 145.11(a)(4)requires that an applicant for a propellerrating (class 2) prepares a list of eachpropeller for which the repair stationseeks approval. Revisions to the currentlist require FAA approval, which makestimely revisions cumbersome in thedynamic maintenance marketingenvironment.

The FAA believes that repair stationsthat choose to use a capability list willincur cost savings. Since the FAA doesnot know how many repair stations withlimited ratings will choose this optionor how frequently they will choose thisoption, it is not possible at this time toquantify the cost savings.

Repair Station ManualsBased on FAA statistics and

information provided by industry thatwas used in the preliminary regulatoryevaluation, repair stations are estimatedto employ approximately 12,877

supervisors and at least 13,444inspectors. These repair stations mustmaintain approximately 26,321 IPMs.Because of the complexity of manyrepair stations’ operations, the repairstations should document additionalaspects of their operations not coveredin the current IPM. Therefore, the FAAwill eliminate the requirements thatrepair stations maintain an IPM andreplace it with a requirement that repairstations maintain an acceptable qualitycontrol and require the repair station tomaintain a repair station manual todocument operational procedures. Also,the current requirement for all repairstations’ supervisory and inspectionpersonnel to each have a copy of themanual has been withdrawn. In the finalrule, only 4,625 repair station manualswill be required to be maintained, so thetotal number of required manuals willbe reduced by 21,696. Final § 145.207will require only that the repair stationmanual be accessible for use by repairstation personnel. Furthermore, thesince smaller repair stations do notperform as complex operations as dolarger repair stations (due to the numberof employees, duties, andresponsibilities), the cost for the smallerrepair station to revise their IPM and tomeet the requirements of final § 145.209is approximately half that of a largerrepair station.

Deletion of Quality Assurance

Proposed § 145.201 required eachrepair station to establish and maintaina quality assurance system acceptable tothe Administrator. The FAA estimatedthat repair stations were going to incura total one-time cost of approximately$1,471,400 and annual costs ofapproximately $12,123,200 on thisquality assurance system. However, forthe final rule, the FAA withdrew thisrequirement and, therefore, no cost willbe incurred by these repair stations forthe quality assurance system. As statedin the Preamble, the FAA has removedthe quality assurance requirements fromthe final rule and any references to ithave been removed from the manualrequirements. The FAA intends to issuea subsequent SNPRM that will addressthis issue.

The FAA has determined that thisfinal rule will not have a significantimpact on a substantial number of smallentities. Accordingly, pursuant to theRegulatory Flexibility Act, 5 U.S.C. 605(b), the Federal Aviation Administrationcertifies that this rule will not have asignificant economic impact on asubstantial number of small entities.

International Trade Impact Assessment

The Trade Agreement Act of 1979prohibits Federal agencies fromengaging in any standards or relatedactivities that create unnecessaryobstacles to the foreign commerce of theUnited States. Legitimate domesticobjectives, such as safety, are notconsidered unnecessary obstacles. Thestatute also requires consideration ofinternational standards and whereappropriate, that they be the basis forU.S. standards. In addition, consistentwith the Administration’s belief in thegeneral superiority and desirability offree trade, it is the policy of theAdministration to remove or diminishto the extent feasible, barriers tointernational trade, including bothbarriers affecting the export of Americangoods and services to foreign countriesand barriers affecting the import offoreign goods and services into theUnited States.

The final rule is not expected to affecttrade opportunities for U.S. firms doingbusiness overseas or for foreign firmsdoing business in the United States.Furthermore, the final rule is consistentwith the terms of several tradeagreements to which the United Statesis a signatory, such as the TradeAgreement Act of 1979 (19 U.S.C. 2501et seq.), incorporating the Agreement onTrade in Civil Aircraft (31 U.S.T. 619)and the Agreement on TechnicalBarriers to Trade (Standards) (19 U.S.C.2531), as well as the General Agreementon Trade in Services (19 U.S.C. 3511).The revision to part 145 is alsoconsistent with 49 U.S.C. 40105,formerly 1102 (a) of the FederalAviation Act of 1958, as amended,which requires the FAA to exercise andperform its powers and dutiesconsistently with any obligationassumed by the United States in anyagreement that may be in force betweenthe United States and any foreigncountry or countries.

Unfunded Mandates Reform ActAssessment

The Unfunded Mandates Reform Actof 1995 (the Act), enacted as Public Law104–4 on March 22, 1995, is intended,among other things, to curb the practiceof imposing unfunded Federal mandateson State, local, and tribal governments.Title II of the Act requires each Federalagency to prepare a written statementassessing the effects of any Federalmandate in a proposed or final agencyrule that may result in a $100 million ormore expenditure (adjusted annually forinflation) in any one year by State, local,and tribal governments, in the aggregate,or by the private sector; such a mandate



is deemed to be a ‘‘significant regulatoryaction.’’

These final rule does not meet thecost thresholds described above.Furthermore, this final rule will notimpose a significant cost or uniquelyaffect small governments. Therefore, therequirements of Title II of the UnfundedMandates Reform Act of 1995 do notapply.

Executive Order 3132, FederalismThe FAA has analyzed this final rule

under the principles and criteria ofExecutive Order 13132, Federalism. Wedetermined that this action will nothave a substantial direct effect on theStates, or the relationship between thenational Government and the States, oron the distribution of power andresponsibilities among the variouslevels of government. Therefore, wedetermined that this final rule does nothave federalism implications.

Plain Language

In response to the June 1, 1998,Presidential Memorandum regarding theuse of plain language, the FAAreexamined the writing style currentlyused in the development of regulations.The memorandum requires Federalagencies to communicate clearly withthe public. We are interested in yourcomments on whether the style of thisdocument is clear, and in any othersuggestions you might have to improvethe clarity of FAA communications thataffect you. You can get moreinformation about the PresidentialMemorandum and the plain languageinitiative at http://www.plainlanguage.gov.

Environmental Analysis

FAA Order 1050.1D defines FAAactions that may be categoricallyexcluded from preparation of a National

Environmental Policy Act (NEPA)environmental impact statement. Inaccordance with FAA Order 1050.1D,appendix 4, paragraph 4(j), thisrulemaking action qualifies for acategorical exclusion.

Energy Impact

The energy impact of the notice hasbeen assessed in accordance with theEnergy Policy and Conservation Act(EPCA), enacted as Public Law 94–163,as amended (42 U.S.C. 6362), and FAAOrder 1053.1. It has been determinedthat the final rule is not a majorregulatory action under the provisionsof the EPCA.

Cross Reference Table

To identify where we have locatedpresent requirements in the final rule,we have provided the following crossreference table.

CROSS-REFERENCE TABLE

Old section New section(s)

§ 145.1 ................................................................................................................................................. § 145.1§ 145.2 ................................................................................................................................................. § 145.205§ 145.3 ................................................................................................................................................. § 145.5§ 145.11 ............................................................................................................................................... §§ 145.51 and 145.53§ 145.13 ............................................................................................................................................... § 145.51§ 145.15 ............................................................................................................................................... §§ 145.55 and 145.57§ 145.17 ............................................................................................................................................... § 145.55§ 145.19 ............................................................................................................................................... § 145.5§ 145.21 ............................................................................................................................................... § 145.105§ 145.23 ............................................................................................................................................... § 145.223§ 145.25 ............................................................................................................................................... Deleted§ 145.31 ............................................................................................................................................... § 145.59§ 145.33 ............................................................................................................................................... § 145.61§ 145.35 ............................................................................................................................................... § 145.103§ 145.37 ............................................................................................................................................... § 145.103§ 145.39 ............................................................................................................................................... §§ 145.151 and 145.153§ 145.41 ............................................................................................................................................... § 145.159§ 145.43 ............................................................................................................................................... § 145.161§ 145.45 ............................................................................................................................................... §§ 145.155 and 145.211§ 145.47 ............................................................................................................................................... §§ 145.109 and 145.217§ 145.49 ............................................................................................................................................... § 145.109§ 145.51 ............................................................................................................................................... §§ 145.107, 145.201, and 145.203§ 145.53 ............................................................................................................................................... § 145.201§ 145.55 ............................................................................................................................................... § 145.101§ 145.57 ............................................................................................................................................... §§ 145.109 and 145.201§ 145.59 ............................................................................................................................................... §§ 145.157 and 145.213§ 145.61 ............................................................................................................................................... § 145.219§ 145.63 ............................................................................................................................................... § 145.221§ 145.71 ............................................................................................................................................... § 145.51§ 145.73 ............................................................................................................................................... §§ 145.53 and 145.201§ 145.75 ............................................................................................................................................... §§ 145.151, 145.153, 145.155 and 145.157§ 145.77 ............................................................................................................................................... § 145.201§ 145.79 ............................................................................................................................................... §§ 145.219 and 145.221§ 145.101 ............................................................................................................................................. Deleted.§ 145.103 ............................................................................................................................................. Deleted.§ 145.105 ............................................................................................................................................. Deleted.Appendix A .......................................................................................................................................... Deleted.

CROSS-REFERENCE TABLE

New section Old section(s)

§ 145.1 ........................................................................................................................................ § 145.1§ 145.3 ........................................................................................................................................ New.



CROSS-REFERENCE TABLE—Continued

New section Old section(s)

§ 145.5 ........................................................................................................................................ § 145.3 and 145.19§ 145.51 ...................................................................................................................................... §§ 145.11, 145.13, and 145.71§ 145.53 ...................................................................................................................................... §§ 145.11 and 145.73§ 145.55 ...................................................................................................................................... §§ 145.15 and 145.17§ 145.57 ...................................................................................................................................... § 145.15§ 145.59 ...................................................................................................................................... § 145.31§ 145.61 ...................................................................................................................................... § 145.33§ 145.101 .................................................................................................................................... § 145.55§ 145.103 .................................................................................................................................... §§ 145.35 and 145.37§ 145.105 .................................................................................................................................... § 145.21§ 145.107 .................................................................................................................................... § 145.51§ 145.109 .................................................................................................................................... §§ 145.47, 145.49, and 145.57§ 145.151 .................................................................................................................................... §§ 145.39 and 145.75§ 145.153 .................................................................................................................................... §§ 145.39 and 145.75§ 145.155 .................................................................................................................................... §§ 145.45 and 145.75§ 145.157 .................................................................................................................................... §§ 145.59 and 145. 75§ 145.159 .................................................................................................................................... § 145.41§ 145.161 .................................................................................................................................... § 145.43§ 145.163 .................................................................................................................................... New.§ 145.201 .................................................................................................................................... §§ 145.51, 145.53, 145.57, 145.73, and 145.77§ 145.203 .................................................................................................................................... § 145.51§ 145.205 .................................................................................................................................... § 145.2§ 145.207 .................................................................................................................................... New.§ 145.209 .................................................................................................................................... New.§ 145.211 .................................................................................................................................... 145.45§ 145.213 .................................................................................................................................... 145.59§ 145.215 .................................................................................................................................... New.§ 145.217 .................................................................................................................................... 145.47§ 145.219 .................................................................................................................................... 145.61 and 145.79§ 145.221 .................................................................................................................................... 145.63 and 145.79§ 145.223 .................................................................................................................................... 145.23

List of Subjects

14 CFR Part 91

Aircraft, Airworthiness directives andstandards, Aviation safety, Safety.

14 CFR Part 121

Aircraft, Airmen, Airplanes,Airworthiness directives and standards,Aviation safety, Safety.

14 CFR Part 135

Aircraft, Airplanes, Airworthiness,Airmen, Aviation safety, Safety.

14 CFR Part 145

Air carriers, Air transportation,Aircraft, Aviation safety, Recordkeepingand reporting, Safety.

The Amendment

In consideration of the foregoing, theFederal Aviation Administrationamends parts 91, 121, 135, and 145 ofTitle 14, Code of Federal Regulations asfollows:

PART 91—GENERAL OPERATING ANDFLIGHT RULES

1. The authority citation for part 91continues to read as follows:

Authority: 49 U.S.C. 106(g), 1155, 40103,40113, 40120, 44101, 44111, 44701, 44709,44711, 44712, 44715, 44716, 44717, 44722,

46306, 46315, 46316, 46504, 46506–46507,47122, 47508, 47528–47531; articles 12 and29 of the Convention on International CivilAviation (61 stat. 1180).

§ 91.411 [Amended]

2. Amend § 91.411 by removingparagraph (b)(2)(v).

§ 91.413 [Amended]

3. Amend § 91.413 by removingparagraph (c)(1)(iv).

Appendix A to Part 91 [Amended]

4. Amend appendix A to part 91 byremoving paragraph 4(b)(1)(iii).

PART 121—OPERATINGREQUIREMENTS: DOMESTIC, FLAG,AND SUPPLEMENTAL OPERATIONS


Authority: 49 U.S.C. 106(g), 40113, 40119,44101, 44701–44702, 44705, 44709–44711,44713, 44716–44717, 44722, 44901, 44903–44904, 44912, 46105.

6. Amend Special Federal AviationRegulation No. 36 by revising paragraph(2)(c) to read as follows:

Special Federal Aviation Regulation No. 36

* * * * *(2) * * *

(c) Contrary provisions of § 145.201(c)(2)notwithstanding, the holder of a repairstation certificate under 14 CFR part 145 thatis located in the United States may performa major repair on an article for which it israted using technical data not approved bythe FAA and approve that article for returnto service, if authorized in accordance withthis Special Federal Aviation Regulation. Ifthe certificate holder holds a rating limitedto a component of a product or article, theholder may not, by virtue of this SpecialFederal Aviation Regulation, approve thatproduct or article for return to service.

* * * * *

7. Amend § 121.378 by revisingparagraph (a) to read as follows:

§ 121.378 Certificate requirements.

(a) Except for maintenance,preventive maintenance, alterations,and required inspections performed bya certificated repair station that islocated outside the United States, eachperson who is directly in charge ofmaintenance, preventive maintenance,or alterations, and each personperforming required inspections musthold an appropriate airman certificate.* * * * *

8. Amend § 121.709 by revisingparagraph (b); redesignating paragraphs(c) and (d) as paragraphs (d) and (e),respectively, and adding a new



paragraph (c), and revising redesignatedparagraphs (d) and (e) to read as follows:

§ 121.709 Airworthiness release or aircraftlog entry.

* * * * *(b) The airworthiness release or log

entry required by paragraph (a) of thissection must—

(1) Be prepared in accordance withthe procedures set forth in the certificateholder’s manual;

(2) Include a certification that—(i) The work was performed in

accordance with the requirements of thecertificate holder’s manual;

(ii) All items required to be inspectedwere inspected by an authorized personwho determined that the work wassatisfactorily completed;

(iii) No known condition exists thatwould make the airplane unairworthy;and

(iv) So far as the work performed isconcerned, the aircraft is in conditionfor safe operation; and

(3) Be signed by an authorizedcertificated mechanic or repairmanexcept that a certificated repairman maysign the release or entry only for thework for which he is employed andcertificated.

(c) Notwithstanding paragraph (b)(3)of this section, after maintenance,preventive maintenance, or alterationsperformed by a repair station that islocated outside the United States, theairworthiness release or log entryrequired by paragraph (a) of this sectionmay be signed by a person authorizedby that repair station.

(d) When an airworthiness releaseform is prepared the certificate holdermust give a copy to the pilot incommand and must keep a recordthereof for at least 2 months.

(e) Instead of restating each of theconditions of the certification requiredby paragraph (b) of this section, the aircarrier may state in its manual that thesignature of an authorized certificatedmechanic or repairman constitutes thatcertification.

PART 135—OPERATINGREQUIREMENTS: COMMUTER ANDON-DEMAND OPERATIONS ANDRULES GOVERNING PERSONS ONBOARD SUCH AIRCRAFT


Authority: 49 U.S.C. 106(g), 44113, 44701–44702, 44705, 44709, 44711–44713, 44715–44717, 44722.

10. Amend § 135.435 by revisingparagraph (a) to read as follows:

§ 135.435 Certificate requirements.(a) Except for maintenance,

preventive maintenance, alterations,and required inspections performed bya certificated repair station that islocated outside the United States, eachperson who is directly in charge ofmaintenance, preventive maintenance,or alterations, and each personperforming required inspections musthold an appropriate airman certificate.* * * * *

11. Amend § 135.443 paragraph (b),redesignating paragraph (c) as paragraph(d) and revising it, and adding a newparagraph (c) to read as follows:

§ 135.443 Airworthiness release or aircraftmaintenance log entry.

* * * * *(b) The airworthiness release or log

entry required by paragraph (a) of thissection must—

(1) Be prepared in accordance withthe procedure in the certificate holder’smanual;

(2) Include a certification that—(i) The work was performed in

accordance with the requirements of thecertificate holder’s manual;

(ii) All items required to be inspectedwere inspected by an authorized personwho determined that the work wassatisfactorily completed;

(iii) No known condition exists thatwould make the aircraft unairworthy;and

(iv) So far as the work performed isconcerned, the aircraft is in conditionfor safe operation; and

(3) Be signed by an authorizedcertificated mechanic or repairman,except that a certificated repairman maysign the release or entry only for thework for which that person is employedand for which that person is certificated.

(c) Notwithstanding paragraph (b)(3)of this section, after maintenance,preventive maintenance, or alterationsperformed by a repair station locatedoutside the United States , theairworthiness release or log entryrequired by paragraph (a) of this sectionmay be signed by a person authorizedby that repair station.

(d) Instead of restating each of theconditions of the certification requiredby paragraph (b) of this section, thecertificate holder may state in itsmanual that the signature of anauthorized certificated mechanic orrepairman constitutes that certification.

12. Amend part 145 as follows:A. The authority citation continues to

read:Authority: 49 U.S.C. 106(g), 40113, 44701–

44702, 44707, 44717.

B. By removing Appendix A.

C. By revising subparts A through Dto read as follows (SFAR No. 36 Noteremains unchanged):

PART 145—REPAIR STATIONS

* * * * *Sec.

Subpart A—General

145.1 Applicability.145.3 Definition of terms.145.5 Certificate and operations

specifications requirements.


145.51 Application for certificate.145.53 Issue of certificate.145.55 Duration and renewal of certificate.145.57 Amendment to or transfer of

certificate.145.59 Ratings.145.61 Limited ratings.

Subpart C—Housing, Facilities, Equipment,Materials, and Data

145.101 General.145.103 Housing and facilities

requirements.145.105 Change of location, housing, or

facilities.145.107 Satellite repair stations.145.109 Equipment, materials, and data

requirements.


145.151 Personnel requirements.145.153 Supervisory personnel

requirements.145.155 Inspection personnel requirements.145.157 Personnel authorized to approve an

article for return to service.145.159 Recommendation of a person for

certification as a repairman.145.161 Records of management,

supervisory, and inspection personnel.145.163 Training requirements.


145.201 Privileges and limitations ofcertificate.

145.203 Work performed at anotherlocation.

145.205 Maintenance, preventivemaintenance, and alterations performedfor certificate holders under parts 121,125, and 135, and for foreign air carriersor foreign persons operating a U.S.-registered aircraft in common carriageunder part 129.

145.207 Repair station manual.145.209 Repair station manual contents.145.211 Quality control system.145.213 Inspection of maintenance,

preventive maintenance, or alterations.145.215 Capability list.145.217 Contract maintenance.145.219 Recordkeeping.145.221 Reports of failures, malfunctions,

or defects.145.223 FAA inspections.

* * * * *



Subpart A—General

§ 145.1 Applicability.

This part describes how to obtain arepair station certificate. This part alsocontains the rules a certificated repairstation must follow related to itsperformance of maintenance, preventivemaintenance, or alterations of anaircraft, airframe, aircraft engine,propeller, appliance, or component partto which part 43 applies. It also appliesto any person who holds, or is requiredto hold, a repair station certificateissued under this part.

§ 145.3 Definition of terms.

For the purposes of this part, thefollowing definitions apply:

(a) Accountable manager means theperson designated by the certificatedrepair station who is responsible for andhas the authority over all repair stationoperations that are conducted underpart 145, including ensuring that repairstation personnel follow the regulationsand serving as the primary contact withthe FAA.

(b) Article means an aircraft, airframe,aircraft engine, propeller, appliance, orcomponent part.

(c) Directly in charge means havingthe responsibility for the work of acertificated repair station that performsmaintenance, preventive maintenance,alterations, or other functions affectingaircraft airworthiness. A person directlyin charge does not need to physicallyobserve and direct each workerconstantly but must be available forconsultation on matters requiringinstruction or decision from higherauthority.

(d) Line maintenance means—(1) Any unscheduled maintenance

resulting from unforeseen events; or(2) Scheduled checks that contain

servicing and/or inspections that do notrequire specialized training, equipment,or facilities.

§ 145.5 Certificate and operationsspecifications requirements.

(a) No person may operate as acertificated repair station without, or inviolation of, a repair station certificate,ratings, or operations specificationsissued under this part.

(b) The certificate and operationsspecifications issued to a certificatedrepair station must be available on thepremises for inspection by the publicand the FAA.


§ 145.51 Application for certificate.

(a) An application for a repair stationcertificate and rating must be made in

a format acceptable to the FAA andmust include the following:

(1) A repair station manual acceptableto the FAA as required by § 145.207;

(2) A quality control manualacceptable to the FAA as required by§ 145.211(c);

(3) A list by type, make, or model, asappropriate, of each article for whichthe application is made;

(4) An organizational chart of therepair station and the names and titlesof managing and supervisory personnel;

(5) A description of the housing andfacilities, including the physicaladdress, in accordance with § 145.103;

(6) A list of the maintenancefunctions, for approval by the FAA, tobe performed for the repair stationunder contract by another person inaccordance with § 145.217; and

(7) A training program for approval bythe FAA in accordance with § 145.163.

(b) The equipment, personnel,technical data, and housing andfacilities required for the certificate andrating, or for an additional rating mustbe in place for inspection at the time ofcertification or rating approval by theFAA. An applicant may meet theequipment requirement of thisparagraph if the applicant has a contractacceptable to the FAA with anotherperson to make the equipment availableto the applicant at the time ofcertification and at any time that it isnecessary when the relevant work isbeing performed by the repair station.

(c) In addition to meeting the otherapplicable requirements for a repairstation certificate and rating, anapplicant for a repair station certificateand rating located outside the UnitedStates must meet the followingrequirements:

(1) The applicant must show that therepair station certificate and/or rating isnecessary for maintaining or altering thefollowing:

(i) U.S.-registered aircraft and articlesfor use on U.S.-registered aircraft, or

(ii) Foreign-registered aircraftoperated under the provisions of part121 or part 135, and articles for use onthese aircraft.

(2) The applicant must show that thefee prescribed by the FAA has beenpaid.

(d) An application for an additionalrating, amended repair stationcertificate, or renewal of a repair stationcertificate must be made in a formatacceptable to the FAA. The applicationmust include only that informationnecessary to substantiate the change orrenewal of the certificate.

§ 145.53 Issue of certificate.(a) Except as provided in paragraph

(b) of this section, a person who meets

the requirements of this part is entitledto a repair station certificate withappropriate ratings prescribing suchoperations specifications andlimitations as are necessary in theinterest of safety.

(b) If the person is located in acountry with which the United Stateshas a bilateral aviation safety agreement,the FAA may find that the person meetsthe requirements of this part based ona certification from the civil aviationauthority of that country. Thiscertification must be made inaccordance with implementationprocedures signed by the Administratoror the Administrator’s designee.

§ 145.55 Duration and renewal ofcertificate.

(a) A certificate or rating issued to arepair station located in the UnitedStates is effective from the date of issueuntil the repair station surrenders it orthe FAA suspends or revokes it.

(b) A certificate or rating issued to arepair station located outside the UnitedStates is effective from the date of issueuntil the last day of the 12th month afterthe date of issue unless the repairstation surrenders the certificate or theFAA suspends or revokes it. The FAAmay renew the certificate or rating for24 months if the repair station hasoperated in compliance with theapplicable requirements of part 145within the preceding certificate durationperiod.

(c) A certificated repair station locatedoutside the United States that appliesfor a renewal of its repair stationcertificate must—

(1) Submit its request for renewal nolater than 30 days before the repairstation’s current certificate expires. If arequest for renewal is not made withinthis period, the repair station mustfollow the application procedures in§ 145.51.

(2) Send its request for renewal to theFAA office that has jurisdiction over thecertificated repair station.

(d) The holder of an expired,surrendered, suspended, or revokedcertificate must return it to the FAA.

§ 145.57 Amendment to or transfer ofcertificate.

(a) The holder of a repair stationcertificate must apply for a change to itscertificate in a format acceptable to theFAA. A change to the certificate isnecessary if the certificate holder—

(1) Changes the location of the repairstation, or

(2) Requests to add or amend a rating.(b) If the holder of a repair station

certificate sells or transfers its assets, thenew owner must apply for an amendedcertificate in accordance with § 145.51.



§ 145.59 Ratings.The following ratings are issued

under this subpart:(a) Airframe ratings.(1) Class 1: Composite construction of

small aircraft.(2) Class 2: Composite construction of

large aircraft.(3) Class 3: All-metal construction of

small aircraft.(4) Class 4: All-metal construction of

large aircraft.(b) Powerplant ratings.(1) Class 1: Reciprocating engines of

400 horsepower or less.(2) Class 2: Reciprocating engines of

more than 400 horsepower.(3) Class 3: Turbine engines.(c) Propeller ratings.(1) Class 1: Fixed-pitch and ground-

adjustable propellers of wood, metal, orcomposite construction.

(2) Class 2: Other propellers, by make.(d) Radio ratings.(1) Class 1: Communication

equipment. Radio transmitting and/orreceiving equipment used in an aircraftto send or receive communications inflight, regardless of carrier frequency ortype of modulation used. Thisequipment includes auxiliary andrelated aircraft interphone systems,amplifier systems, electrical orelectronic intercrew signaling devices,and similar equipment. This equipmentdoes not include equipment used fornavigating or aiding navigation ofaircraft, equipment used for measuringaltitude or terrain clearance, othermeasuring equipment operated on radioor radar principles, or mechanical,electrical, gyroscopic, or electronicinstruments that are a part ofcommunications radio equipment.

(2) Class 2: Navigational equipment.A radio system used in an aircraft for enroute or approach navigation. This doesnot include equipment operated onradar or pulsed radio frequencyprinciples, or equipment used formeasuring altitude or terrain clearance.

(3) Class 3: Radar equipment. Anaircraft electronic system operated onradar or pulsed radio frequencyprinciples.

(e) Instrument ratings.(1) Class 1: Mechanical. A diaphragm,

bourdon tube, aneroid, optical, ormechanically driven centrifugalinstrument used on aircraft or to operateaircraft, including tachometers, airspeedindicators, pressure gauges drift sights,magnetic compasses, altimeters, orsimilar mechanical instruments.

(2) Class 2: Electrical. Self-synchronous and electrical-indicatinginstruments and systems, includingremote indicating instruments, cylinderhead temperature gauges, or similarelectrical instruments.

(3) Class 3: Gyroscopic. Aninstrument or system using gyroscopicprinciples and motivated by air pressureor electrical energy, including automaticpilot control units, turn and bankindicators, directional gyros, and theirparts, and flux gate and gyrosyncompasses.

(4) Class 4: Electronic. An instrumentwhose operation depends on electrontubes, transistors, or similar devices,including capacitance type quantitygauges, system amplifiers, and engineanalyzers.

(f) Accessory ratings.(1) Class 1: A mechanical accessory

that depends on friction, hydraulics,mechanical linkage, or pneumaticpressure for operation, including aircraftwheel brakes, mechanically drivenpumps, carburetors, aircraft wheelassemblies, shock absorber struts andhydraulic servo units.

(2) Class 2: An electrical accessorythat depends on electrical energy for itsoperation, and a generator, includingstarters, voltage regulators, electricmotors, electrically driven fuel pumpsmagnetos, or similar electricalaccessories.

(3) Class 3: An electronic accessorythat depends on the use of an electrontube transistor, or similar device,including supercharger, temperature, airconditioning controls, or similarelectronic controls.

§ 145.61 Limited ratings.(a) The FAA may issue a limited

rating to a certificated repair station thatmaintains or alters only a particulartype of airframe, powerplant, propeller,radio, instrument, or accessory, or partthereof, or performs only specializedmaintenance requiring equipment andskills not ordinarily performed underother repair station ratings. Such arating may be limited to a specificmodel aircraft, engine, or constituentpart, or to any number of parts made bya particular manufacturer.

(b) The FAA issues limited ratingsfor—

(1) Airframes of a particular make andmodel;

(2) Engines of a particular make andmodel;

(3) Propellers of a particular make andmodel;

(4) Instruments of a particular makeand model;

(5) Radio equipment of a particularmake and model;

(6) Accessories of a particular makeand model;

(7) Landing gear components;(8) Floats, by make;(9) Nondestructive inspection, testing,

and processing;

(10) Emergency equipment;(11) Rotor blades, by make and model;

and(12) Aircraft fabric work.(c) For a limited rating for specialized

services, the operations specifications ofthe repair station must contain thespecification used to perform thespecialized service. The specificationmay be—

(1) A civil or military specificationcurrently used by industry andapproved by the FAA, or

(2) A specification developed by theapplicant and approved by the FAA.

Subpart C—Housing, Facilities,Equipment, Materials, and Data

§ 145.101 General.A certificated repair station must

provide housing, facilities, equipment,materials, and data that meet theapplicable requirements for the issuanceof the certificate and ratings the repairstation holds.

§ 145.103 Housing and facilitiesrequirements.

(a) Each certificated repair stationmust provide—

(1) Housing for the facilities,equipment, materials, and personnelconsistent with its ratings.

(2) Facilities for properly performingthe maintenance, preventivemaintenance, or alterations of articles orthe specialized services for which it israted. Facilities must include thefollowing:

(i) Sufficient work space and areas forthe proper segregation and protection ofarticles during all maintenance,preventive maintenance, or alterations;

(ii) Segregated work areas enablingenvironmentally hazardous or sensitiveoperations such as painting, cleaning,welding, avionics work, electronicwork, and machining to be doneproperly and in a manner that does notadversely affect other maintenance oralteration articles or activities;

(iii) Suitable racks, hoists, trays,stands, and other segregation means forthe storage and protection of all articlesundergoing maintenance, preventivemaintenance, or alterations;

(iv) Space sufficient to segregatearticles and materials stocked forinstallation from those articlesundergoing maintenance, preventivemaintenance, or alterations; and

(v) Ventilation, lighting, and controlof temperature, humidity, and otherclimatic conditions sufficient to ensurepersonnel perform maintenance,preventive maintenance, or alterationsto the standards required by this part.

(b) A certificated repair station withan airframe rating must provide suitable



permanent housing to enclose thelargest type and model of aircraft listedon its operations specifications.

(c) A certificated repair station mayperform maintenance, preventivemaintenance, or alterations on articlesoutside of its housing if it providessuitable facilities that are acceptable tothe FAA and meet the requirements of§ 145.103(a) so that the work can bedone in accordance with therequirements of part 43 of this chapter.

§ 145.105 Change of location, housing, orfacilities.

(a) A certificated repair station maynot change the location of its housingwithout written approval from the FAA.

(b) A certificated repair station maynot make any changes to its housing orfacilities required by § 145.103 thatcould have a significant effect on itsability to perform the maintenance,preventive maintenance, or alterationsunder its repair station certificate andoperations specifications withoutwritten approval from the FAA.

(c) The FAA may prescribe theconditions, including any limitations,under which a certificated repair stationmust operate while it is changing itslocation, housing, or facilities.

§ 145.107 Satellite repair stations.(a) A certificated repair station under

the managerial control of anothercertificated repair station may operate asa satellite repair station with its owncertificate issued by the FAA. A satelliterepair station—

(1) May not hold a rating not held bythe certificated repair station withmanagerial control;

(2) Must meet the requirements foreach rating it holds;

(3) Must submit a repair stationmanual acceptable to the FAA asrequired by § 145.207; and

(4) Must submit a quality controlmanual acceptable to the FAA asrequired by § 145.211(c).

(b) Unless the FAA indicatesotherwise, personnel and equipmentfrom the certificated repair station withmanagerial control and from each of thesatellite repair stations may be shared.However, inspection personnel must bedesignated for each satellite repairstation and available at the satelliterepair station any time a determinationof airworthiness or return to service ismade. In other circumstances,inspection personnel may be away fromthe premises but must be available bytelephone, radio, or other electronicmeans.

(c) A satellite repair station may notbe located in a country other than thedomicile country of the certificatedrepair station with managerial control.

§ 145.109 Equipment, materials, and datarequirements.

(a) Except as otherwise prescribed bythe FAA, a certificated repair stationmust have the equipment, tools, andmaterials necessary to perform themaintenance, preventive maintenance,or alterations under its repair stationcertificate and operations specificationsin accordance with part 43. Theequipment, tools, and material must belocated on the premises and under therepair station’s control when the work isbeing done.

(b) A certificated repair station mustensure all test and inspectionequipment and tools used to makeairworthiness determinations on articlesare calibrated to a standard acceptableto the FAA.

(c) The equipment, tools, and materialmust be those recommended by themanufacturer of the article or must be atleast equivalent to those recommendedby the manufacturer and acceptable tothe FAA.

(d) A certificated repair station mustmaintain, in a format acceptable to theFAA, the documents and data requiredfor the performance of maintenance,preventive maintenance, or alterationsunder its repair station certificate andoperations specifications in accordancewith part 43. The following documentsand data must be current and accessiblewhen the relevant work is being done:

(1) Airworthiness directives,(2) Instructions for continued

airworthiness,(3) Maintenance manuals,(4) Overhaul manuals,(5) Standard practice manuals,(6) Service bulletins, and(7) Other applicable data acceptable to

or approved by the FAA.


§ 145.151 Personnel requirements.Each certificated repair station must—(a) Designate a repair station

employee as the accountable manager;(b) Provide qualified personnel to

plan, supervise, perform, and approvefor return to service the maintenance,preventive maintenance, or alterationsperformed under the repair stationcertificate and operations specifications;

(c) Ensure it has a sufficient numberof employees with the training orknowledge and experience in theperformance of maintenance, preventivemaintenance, or alterations authorizedby the repair station certificate andoperations specifications to ensure allwork is performed in accordance withpart 43; and

(d) Determine the abilities of itsnoncertificated employees performing

maintenance functions based ontraining, knowledge, experience, orpractical tests.

§ 145.153 Supervisory personnelrequirements.

(a) A certificated repair station mustensure it has a sufficient number ofsupervisors to direct the workperformed under the repair stationcertificate and operations specifications.The supervisors must oversee the workperformed by any individuals who areunfamiliar with the methods,techniques, practices, aids, equipment,and tools used to perform themaintenance, preventive maintenance,or alterations.

(b) Each supervisor must—(1) If employed by a repair station

located inside the United States, becertificated under part 65.

(2) If employed by a repair stationlocated outside the United States—

(i) Have a minimum of 18 months ofpractical experience in the work beingperformed; or

(ii) Be trained in or thoroughlyfamiliar with the methods, techniques,practices, aids, equipment, and toolsused to perform the maintenance,preventive maintenance, or alterations.

(c) A certificated repair station mustensure its supervisors understand, read,and write English.

§ 145.155 Inspection personnelrequirements.

(a) A certificated repair station mustensure that persons performinginspections under the repair stationcertificate and operations specificationsare—

(1) Thoroughly familiar with theapplicable regulations in this chapterand with the inspection methods,techniques, practices, aids, equipment,and tools used to determine theairworthiness of the article on whichmaintenance, preventive maintenance,or alterations are being performed; and

(2) Proficient in using the varioustypes of inspection equipment andvisual inspection aids appropriate forthe article being inspected; and

(b) A certificated repair station mustensure its inspectors understand, read,and write English.

§ 145.157 Personnel authorized to approvean article for return to service.

(a) A certificated repair station locatedinside the United States must ensureeach person authorized to approve anarticle for return to service under therepair station certificate and operationsspecifications is certificated under part65.

(b) A certificated repair stationlocated outside the United States must



ensure each person authorized toapprove an article for return to serviceunder the repair station certificate andoperations specifications is—

(1) Trained in or has 18 monthspractical experience with the methods,techniques, practices, aids, equipment,and tools used to perform themaintenance, preventive maintenance,or alterations; and

(2) Thoroughly familiar with theapplicable regulations in this chapterand proficient in the use of the variousinspection methods, techniques,practices, aids, equipment, and toolsappropriate for the work beingperformed and approved for return toservice.

(c) A certificated repair station mustensure each person authorized toapprove an article for return to serviceunderstands, reads, and writes English.

§ 145.159 Recommendation of a person forcertification as a repairman.

A certificated repair station thatchooses to use repairmen to meet theapplicable personnel requirements ofthis part must certify in a formatacceptable to the FAA that each personrecommended for certification as arepairman—

(a) Is employed by the repair station,and

(b) Meets the eligibility requirementsof § 65.101.

§ 145.161 Records of management,supervisory, and inspection personnel.

(a) A certificated repair station mustmaintain and make available in a formatacceptable to the FAA the following:

(1) A roster of management andsupervisory personnel that includes thenames of the repair station officials whoare responsible for its management andthe names of its supervisors whooversee maintenance functions.

(2) A roster with the names of allinspection personnel.

(3) A roster of personnel authorized tosign a maintenance release forapproving a maintained or alteredarticle for return to service.

(4) A summary of the employment ofeach individual whose name is on thepersonnel rosters required byparagraphs (a)(1) through (a)(3) of thissection. The summary must containenough information on each individuallisted on the roster to show compliancewith the experience requirements of thispart and must include the following:

(i) Present title,(ii) Total years of experience and the

type of maintenance work performed,(iii) Past relevant employment with

names of employers and periods ofemployment,

(iv) Scope of present employment,and

(v) The type of mechanic or repairmancertificate held and the ratings on thatcertificate, if applicable.

(b) Within 5 business days of thechange, the rosters required by thissection must reflect changes caused bytermination, reassignment, change induties or scope of assignment, oraddition of personnel.

§ 145.163 Training requirements.

(a) A certificated repair station musthave an employee training programapproved by the FAA that consists ofinitial and recurrent training. Forpurposes of meeting the requirements ofthis paragraph, beginning April 6,2005—

(1) An applicant for a repair stationcertificate must submit a trainingprogram for approval by the FAA asrequired by § 145.51(a)(7).

(2) A repair station certificated beforethat date must submit its trainingprogram to the FAA for approval by thelast day of the month in which its repairstation certificate was issued.

(b) The training program must ensureeach employee assigned to performmaintenance, preventive maintenance,or alterations, and inspection functionsis capable of performing the assignedtask.

(c) A certificated repair station mustdocument, in a format acceptable to theFAA, the individual employee trainingrequired under paragraph (a) of thissection. These training records must beretained for a minimum of 2 years.

(d) A certificated repair station mustsubmit revisions to its training programto its certificate holding district office inaccordance with the proceduresrequired by § 145.209(e).


§ 145.201 Privileges and limitations ofcertificate.

(a) A certificated repair station may—(1) Perform maintenance, preventive

maintenance, or alterations inaccordance with part 43 on any articlefor which it is rated and within thelimitations in its operationsspecifications.

(2) Arrange for another person toperform the maintenance, preventivemaintenance, or alterations of anyarticle for which the certificated repairstation is rated. If that person is notcertificated under part 145, thecertificated repair station must ensurethat the noncertificated person follows aquality control system equivalent to thesystem followed by the certificatedrepair station.

(3) Approve for return to service anyarticle for which it is rated after it hasperformed maintenance, preventivemaintenance, or an alteration inaccordance with part 43.

(b) A certificated repair station maynot maintain or alter any article forwhich it is not rated, and may notmaintain or alter any article for whichit is rated if it requires special technicaldata, equipment, or facilities that are notavailable to it.

(c) A certificated repair station maynot approve for return to service’

(1) Any article unless themaintenance, preventive maintenance,or alteration was performed inaccordance with the applicableapproved technical data or dataacceptable to the FAA.

(2) Any article after a major repair ormajor alteration unless the major repairor major alteration was performed inaccordance with applicable approvedtechnical data; and

(3) Any experimental aircraft after amajor repair or major alterationperformed under § 43.1(b) unless themajor repair or major alteration wasperformed in accordance with methodsand applicable technical data acceptableto the FAA.

§ 145.203 Work performed at anotherlocation.

A certificated repair station maytemporarily transport material,equipment, and personnel needed toperform maintenance, preventivemaintenance, alterations, or certainspecialized services on an article forwhich it is rated to a place other thanthe repair station’s fixed location if thefollowing requirements are met:

(a) The work is necessary due to aspecial circumstance, as determined bythe FAA; or

(b) It is necessary to perform suchwork on a recurring basis, and the repairstation’s manual includes theprocedures for accomplishingmaintenance, preventive maintenance,alterations, or specialized services at aplace other than the repair station’sfixed location.

§ 145.205 Maintenance, preventivemaintenance, and alterations performed forcertificate holders under parts 121, 125, and135, and for foreign air carriers or foreignpersons operating a U.S.-registered aircraftin common carriage under part 129.

(a) A certificated repair station thatperforms maintenance, preventivemaintenance, or alterations for an aircarrier or commercial operator that hasa continuous airworthiness maintenanceprogram under part 121 or part 135must follow the air carrier’s orcommercial operator’s program and



applicable sections of its maintenancemanual.

(b) A certificated repair station thatperforms inspections for a certificateholder conducting operations under part125 must follow the operator’s FAA-approved inspection program.

(c) A certificated repair station thatperforms maintenance, preventivemaintenance, or alterations for a foreignair carrier or foreign person operating aU.S.-registered aircraft under part 129must follow the operator’s FAA-approved maintenance program.

(d) Notwithstanding the housingrequirement of § 145.103(b), the FAAmay grant approval for a certificatedrepair station to perform linemaintenance for an air carriercertificated under part 121 or part 135,or a foreign air carrier or foreign personoperating a U.S.-registered aircraft incommon carriage under part 129 on anyaircraft of that air carrier or person,provided—

(1) The certificated repair stationperforms such line maintenance inaccordance with the operator’s manual,if applicable, and approvedmaintenance program;

(2) The certificated repair station hasthe necessary equipment, trainedpersonnel, and technical data to performsuch line maintenance; and

(3) The certificated repair station’soperations specifications include anauthorization to perform linemaintenance.

§ 145.207 Repair station manual.(a) A certificated repair station must

prepare and follow a repair stationmanual acceptable to the FAA.

(b) A certificated repair station mustmaintain a current repair stationmanual.

(c) A certificated repair station’scurrent repair station manual must beaccessible for use by repair stationpersonnel required by subpart D of thispart.

(d) A certificated repair station mustprovide to its certificate holding districtoffice the current repair station manualin a format acceptable to the FAA.

(e) A certificated repair station mustnotify its certificate holding districtoffice of each revision of its repairstation manual in accordance with theprocedures required by § 145.209(j).

§ 145.209 Repair station manual contents.A certificated repair station’s manual

must include the following:(a) An organizational chart

identifying—(1) Each management position with

authority to act on behalf of the repairstation,

(2) The area of responsibility assignedto each management position, and

(3) The duties, responsibilities, andauthority of each management position;

(b) Procedures for maintaining andrevising the rosters required by§ 145.161;

(c) A description of the certificatedrepair station’s operations, including thehousing, facilities, equipment, andmaterials as required by subpart C ofthis part;

(d) Procedures for—(1) Revising the capability list

provided for in § 145.215 and notifyingthe certificate holding district office ofrevisions to the list, including how oftenthe certificate holding district office willbe notified of revisions; and

(2) The self-evaluation required under§ 145.215(c) for revising the capabilitylist, including methods and frequency ofsuch evaluations, and procedures forreporting the results to the appropriatemanager for review and action;

(e) Procedures for revising the trainingprogram required by § 145.163 andsubmitting revisions to the certificateholding district office for approval;

(f) Procedures to govern workperformed at another location inaccordance with § 145.203;

(g) Procedures for maintenance,preventive maintenance, or alterationsperformed under § 145.205;

(h)Procedures for—(1) Maintaining and revising the

contract maintenance informationrequired by § 145.217(a)(2)(i), includingsubmitting revisions to the certificateholding district office for approval; and

(2) Maintaining and revising thecontract maintenance informationrequired by § 145.217(a)(2)(ii) andnotifying the certificate holding districtoffice of revisions to this information,including how often the certificateholding district office will be notified ofrevisions;

(i) A description of the requiredrecords and the recordkeeping systemused to obtain, store, and retrieve therequired records;

(j) Procedures for revising the repairstation’s manual and notifying itscertificate holding district office ofrevisions to the manual, including howoften the certificate holding districtoffice will be notified of revisions; and

(k) A description of the system usedto identify and control sections of therepair station manual.

§ 145.211 Quality control system.(a) A certificated repair station must

establish and maintain a quality controlsystem acceptable to the FAA thatensures the airworthiness of the articleson which the repair station or any of its

contractors performs maintenance,preventive maintenance, or alterations.

(b) Repair station personnel mustfollow the quality control system whenperforming maintenance, preventivemaintenance, or alterations under therepair station certificate and operationsspecifications.

(c) A certificated repair station mustprepare and keep current a qualitycontrol manual in a format acceptable tothe FAA that includes the following:

(1) A description of the system andprocedures used for—

(i) Inspecting incoming raw materialsto ensure acceptable quality;

(ii) Performing preliminary inspectionof all articles that are maintained;

(iii) Inspecting all articles that havebeen involved in an accident for hiddendamage before maintenance, preventivemaintenance, or alteration is performed;

(iv) Establishing and maintainingproficiency of inspection personnel;

(v) Establishing and maintainingcurrent technical data for maintainingarticles;

(vi) Qualifying and surveillingnoncertificated persons who performmaintenance, prevention maintenance,or alterations for the repair station;

(vii) Performing final inspection andreturn to service of maintained articles;

(viii) Calibrating measuring and testequipment used in maintaining articles,including the intervals at which theequipment will be calibrated; and

(ix) Taking corrective action ondeficiencies;

(2) References, where applicable, tothe manufacturer’s inspection standardsfor a particular article, includingreference to any data specified by thatmanufacturer;

(3) A sample of the inspection andmaintenance forms and instructions forcompleting such forms or a reference toa separate forms manual; and

(4) Procedures for revising the qualitycontrol manual required under thissection and notifying the certificateholding district office of the revisions,including how often the certificateholding district office will be notified ofrevisions.

(d) A certificated repair station mustnotify its certificate holding districtoffice of revisions to its quality controlmanual.

§ 145.213 Inspection of maintenance,preventive maintenance, or alterations.

(a) A certificated repair station mustinspect each article upon which it hasperformed maintenance, preventivemaintenance, or alterations as describedin paragraphs (b) and (c) of this sectionbefore approving that article for returnto service.



(b) A certificated repair station mustcertify on an article’s maintenancerelease that the article is airworthy withrespect to the maintenance, preventivemaintenance, or alterations performedafter—

(1) The repair station performs workon the article; and

(2) An inspector inspects the articleon which the repair station hasperformed work and determines it to beairworthy with respect to the workperformed.

(c) For the purposes of paragraphs (a)and (b) of this section, an inspectormust meet the requirements of§ 145.155.

(d) Except for individuals employedby a repair station located outside theUnited States, only an employeecertificated under part 65 is authorizedto sign off on final inspections andmaintenance releases for the repairstation.

§ 145.215 Capability list.(a) A certificated repair station with a

limited rating may performmaintenance, preventive maintenance,or alterations on an article if the articleis listed on a current capability listacceptable to the FAA or on the repairstation’s operations specifications.

(b) The capability list must identifyeach article by make and model or othernomenclature designated by the article’smanufacturer and be available in aformat acceptable to the FAA.

(c) An article may be listed on thecapability list only if the article iswithin the scope of the ratings of therepair station’s certificate, and only afterthe repair station has performed a self-evaluation in accordance with theprocedures under § 145.209(d)(2). Therepair station must perform this self-evaluation to determine that the repairstation has all of the housing, facilities,equipment, material, technical data,processes, and trained personnel inplace to perform the work on the articleas required by part 145. The repairstation must retain on filedocumentation of the evaluation.

(d) Upon listing an additional articleon its capability list, the repair stationmust provide its certificate holdingdistrict office with a copy of the revisedlist in accordance with the proceduresrequired in § 145.209(d)(1).

§ 145.217 Contract maintenance.(a) A certificated repair station may

contract a maintenance functionpertaining to an article to an outsidesource provided—

(1) The FAA approves themaintenance function to be contractedto the outside source; and

(2) The repair station maintains andmakes available to its certificate holdingdistrict office, in a format acceptable tothe FAA, the following information:

(i) The maintenance functionscontracted to each outside facility; and

(ii) The name of each outside facilityto whom the repair station contractsmaintenance functions and the type ofcertificate and ratings, if any, held byeach facility.

(b) A certificated repair station maycontract a maintenance functionpertaining to an article to anoncertificated person provided—

(1) The noncertificated person followsa quality control system equivalent tothe system followed by the certificatedrepair station;

(2) The certificated repair stationremains directly in charge of the workperformed by the noncertificatedperson; and

(3) The certificated repair stationverifies, by test and/or inspection, thatthe work has been performedsatisfactorily by the noncertificatedperson and that the article is airworthybefore approving it for return to service.

(c) A certificated repair station maynot provide only approval for return toservice of a complete type-certificatedproduct following contractmaintenance, preventive maintenance,or alterations.

§ 145.219 Recordkeeping.(a) A certificated repair station must

retain records in English thatdemonstrate compliance with therequirements of part 43. The recordsmust be retained in a format acceptableto the FAA.

(b) A certificated repair station mustprovide a copy of the maintenancerelease to the owner or operator of thearticle on which the maintenance,preventive maintenance, or alterationwas performed.

(c) A certificated repair station mustretain the records required by thissection for at least 2 years from the datethe article was approved for return toservice.

(d) A certificated repair station mustmake all required records available forinspection by the FAA and the NationalTransportation Safety Board.

§ 145.221 Reports of failures,malfunctions, or defects.

(a) A certificated repair station mustreport to the FAA within 96 hours afterit discovers any failure, malfunction, ordefect of an article. The report must bein a format acceptable to the FAA.

(b) The report required underparagraph (a) of this section mustinclude as much of the followinginformation as is available:

(1) Aircraft registration number;(2) Type, make, and model of the

article;(3) Date of the discovery of the failure,

malfunction, or defect;(4) Nature of the failure, malfunction,

or defect;(5) Time since last overhaul, if

applicable;(6) Apparent cause of the failure,

malfunction, or defect; and(7) Other pertinent information that is

necessary for more completeidentification, determination ofseriousness, or corrective action.

(c) The holder of a repair stationcertificate that is also the holder of apart 121, 125, or 135 certificate; typecertificate (including a supplementaltype certificate); parts manufacturerapproval; or technical standard orderauthorization, or that is the licensee ofa type certificate holder, does not needto report a failure, malfunction, ordefect under this section if the failure,malfunction, or defect has been reportedunder § 21.3, 121.703, 121.704, 125.409,125.410, 135.415, or 135.416 of thischapter.

(d) A certificated repair station maysubmit a service difficulty report(operational or structural) for thefollowing:

(1) A part 121 certificate holder under§ 121.703(g) or § 121.704(f), providedthe report meets the requirements of§§ 121.703(d) and 121.703(e), or§§ 121.704(c) and 121.704(d) of thischapter, as appropriate.

(2) A part 125 certificate holder under§ 125.409(g) or § 125.410(f), providedthe report meets the requirements of§§ 125.409(d) and 125.409(e), or§§ 125.410(c) and 125.410(d) of thischapter, as appropriate;

(3) A part 135 certificate holder under§ 135.415(g) or § 135.416(f), providedthe report meets the requirements of§§ 135.415(d) and 135.415(e), or§ 135.416(c) and 135.416(d) of thechapter, as appropriate.

(e) A certificated repair stationauthorized to report a failure,malfunction, or defect under paragraph(d) of this section must not report thesame failure, malfunction, or defectunder paragraph (a) of this section. Acopy of the report submitted underparagraph (d) of this section must beforwarded to the certificate holder.

§ 145.223 FAA inspections.(a) A certificated repair station must

allow the FAA to inspect that repairstation at any time to determinecompliance with this chapter.

(b) A certificated repair station maynot contract for the performance of amaintenance function on an article with



a noncertificated person unless itprovides in its contract with thenoncertificated person that the FAAmay make an inspection and observe theperformance of the noncertificatedperson’s work on the article.

(c) A certificated repair station maynot return to service any article onwhich a maintenance function wasperformed by a noncertificated person ifthe noncertificated person does notpermit the FAA to make the inspection

described in paragraph (b) of thissection.

Issued in Washington, DC on July 30, 2001.Jane F. Garvey,Administrator.[FR Doc. 01–19362 Filed 7–30–01; 4:40 pm]BILLING CODE 4910–13–P
